2007 schweser answers explanations of book 6 exam 1 am
2007 schweser answers explanations of book 6 exam 1 am
... 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question79#449 16 Youranswer:Dwasincorrect.ThecorrectanswerwasC)Theintroductionofazerobeta(nosystematicrisk)portfoliowithareturnthatishigherthantheriskfreeratecanresultinastraightCMLevenwiththeassumptionthatborrowingandlendingratesaredifferent.Marginaccountsrepresentborrowing,sounlessthemarginlendingrateisthesameastheriskfreerate,thisdoesnotsolvetheproblem(akinkedCML)thatresultsfromunequalborrowingandlendingratesinthemodel.Question80#44 917 Youranswer:Dwascorrect!TheStandardsofPracticehaveverylittletodowithinvestmentconstraints.Question 81 #44 918 Youranswer:Awascorrect!Ariskaverseinvestorpreferslessrisktomorerisk.Thelowerthecorrelation,thegreatertheriskreduction.Thus,ariskaverseinvestorwouldmostprefertheportfoliowiththelowestcorrelationcoefficientandleastprefertheonewiththehighest.Ofthechoicesgiven,AandC抯correlationcoefficientof+0.6isthehighest.Question82#44 919 Youranswer:Bwascorrect!TheCAPMconcludesthatexpectedreturnsareapositive(linear)functionofsystematicrisk.Question83#44920Youranswer:Cwascorrect!TheSMLandCMLarebothlines,andbothintersecttheverticalaxisattheriskfreerate.TheSMLdescribestherisk/returntradeoffforindividualsecuritiesorportfolios,whereastheCMLdescribestherisk/returntradeoffofvariouscombinationsofthemarketportfolioandarisklessasset.Question84#44922杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question70#44907Youranswer:Bwascorrect!$2/50+0.08 =12 .0%Question 71 #44908Youranswer:Bwascorrect!Question72#44909Youranswer:Bwascorrect!Businessriskisthecombinationofsalesrisk,whichisthevariabilityofafirm'ssales,andoperatingrisk,whichistheadditionalvariabilityinoperatingearnings(EBIT)causedbyfixedoperatingcosts.Leverageisthecombinationofbusinessriskandfinancialrisk,whichistheadditionalriskcommonshareholdersmustbearwhenafirmusesfixedcostsourcesoffinancing.Question73#44 910 Youranswer:Dwascorrect!Sinceequityis40%ofassets,theequitymultiplieris1/0.40=2.5.UsingthetraditionalDuPontformula,ROE=8.7%×2.4×2.5=52.2%.Question74#44 911 Youranswer:Dwascorrect!g= (1? payout)(ROE)= (1? 0.40)( 16 % )=9 .6% 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!About68%ofallobservationsfallwithin?standarddeviationofthemean.Thus,about68%ofthevaluesfallbetween5and25.Question30#44 860 Youranswer:Bwascorrect!Thecentrallimittheoremholdsforanydistributionaslongasthesamplesizeislarge(i.e.,n>30).Question 31 #44 8 61 Youranswer:Bwascorrect!Thepopulationvarianceisknown(inthiscase100),sothestandarderrorofthesamplemeanisQuestion32#44 863 Youranswer:Cwascorrect!Thettestisusedwhenthesamplesizeissmall.Question33#44 864 Youranswer:Dwascorrect!Itwoulddecrease,notincrease,theprofitabilityofcorporateinvestmentprojects.Question34#44 865 Youranswer:Awascorrect!Thepotentialdepositexpansionmultiplieristhereciprocalofthereserveratio.Ifthereserveratiois20%,then1/0.20=5.Question35#44 866 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question75#44 912 Youranswer:Awascorrect!Straightlinedepreciation: $14 million/7=$2.0millionAccelerateddepreciation: $14 million×0.333=$4 .66 2millionQuestion 76 #44 913 Youranswer:Awascorrect!Sunkcostsarenottobeincludedininvestmentanalysis.Opportunitycosts,changesinnetworkingcapital,andtheproject抯impactontaxesareallrelevantvariablesindeterminingprojectcashflowforacapitalinvestment.Question77#44 914 Youranswer:Bwascorrect!Forthe4yearperiod,theaveragenetincomeis:($42,000+$98,000+$ 56, 000+$ 56, 000)/4= $63 ,000.Theinitialbookvalueis$800,000,decliningby$200,000peryearuntilthefinalbookvalueis$0.Theaveragebookvalueforthisassetis:($800,000?$0)/2=$400,000.Theaverageaccountingrateofreturnis:AAR=averagenetincome/averagebookvalue= $63 ,000/$400,000=0 .15 75 =15 .75%.Question78#44 915 Youranswer:Cwascorrect!Regularlyreviewingperformance,independence,skills,andexperienceofexistingboardmembersisacharacteristicoftheRemunerations/CompensationCommittee,nottheAuditCommittee.AllotherchoicesarepositivecharacteristicsoftheAuditCommittee.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Firstyearinterestis10%×$2million=$200,000.Firstyearprincipalpayment=234, 919 200,000=$34, 919 .Firstyearaftertaxcashflowis[300,000200,000 60 ,00035,000] (1 0.35)34, 919 + 60 ,000=28,3 31. Remainingprincipalbalanceis2million34, 919 =1, 965 ,081sosecondyearinterestis 1 96, 508andprincipalportionofthepaymentis234, 919 1 96, 508=38, 411 Secondyearaftertaxcashflowis[300,000 1 96, 508 60 ,00035,000] (1 0.35)38, 411 + 60 ,000=27 ,10 9.Includingtheproceedsofthesalethetotalsecondyearaftertaxcashflowis637 ,10 9.NPV==$52,2 91. 81 Question 111 #44950Youranswer:Dwascorrect!Thefourfirmconcentrationratioisthesumofthemarketsharesofthefourlargestfirmsintheindustry.45%+25% +15 % +10 %=95TheHerfindahlindexisthesumofthesquaresofthemarketsharesofeachofthefirmsintheindustry.0.452+0.252+0 .15 2+0 .10 2+0.052=0.30Question 112 #449 51 Youranswer:Bwascorrect!Thisstatementiscorrectinthatthecostofaputoptionisnegative.(Theinvestorhastopayfortheflexibilityoftheputoption.)Theotherstatementscouldnotbecorrect.The搒preadoverthespotratesforaTreasurysecuritysimilartoStahl抯bond?referstoZspreadonthebond.Foracallablebond,theOAS<Zspread,sothiscouldnotbeatruestatementbecause 13 5bp> ;11 0bp.TheoptioncostiscalculatedusingtheOASandtheZspread,notthenominalspread.Thestaticspread(orZspread)isthespreadovereachofthespotratesinagivenTreasurytermstructure,notthespreadovertheTreasury抯YTM.(Note:Weslippedinafixedincomequestionhereinthederivativessectionofthetest.CFAInstitutecandothisatanytime.Beonyourguardforthesetypesoftricks!)Question 113 #44952杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!Note:Question108#44947Youranswer:Dwascorrect!Aflattermstructurecouldbeexplainedaccordingtotheliquiditypreferencetheoryasacasewhereinvestorsexpectshorttermratestodeclineslightly,coupledwithamaturitypremiumthatexactlyoffsetsthedownwardpressurecontainedininvestorexpectations.Ahumpedtermstructurecouldbeexplainedaccordingtothepureexpectationstheoryifwebelievethatforshortermaturities,investorsbelieveinterestrateswillrisealongwiththebeliefthatmediumtermrateswilldeclinealongwiththebeliefthatlongertermrateswillbestable.Thepureexpectationstheorymakesnospecificmentionofthefactthatanupwardslopingtermstructureisaconsequenceofinvestorsexpectingshorttermratestoremainunchangedforaperiodoftimefollowedbyinvestorsexpectingshorttermratestoriseforaperiodoftime.Allthistheorysaysisthatanupwardslopingtermstructurecanbeexplainedbyinvestorsbelievingthatfutureshorttermrateswillrise.Finally,theliquiditypreferencetheoryattemptstoexplainthetermstructureaccordingtotwofactors.Theseareexpectationsaboutfutureinterestratesandamaturitypremiumtocompensateforinterestraterisk.Ifthetermstructureisdeclining,thiscouldbeexplainedsimplybyinvestorexpectationsofdecliningfutureshorttermratescoupledwithamaturitypremiumthatisnotlargeenoughtooffsetthedownwardpressureoninterestratesduetoinvestorexpectations.Question109#44948Youranswer:Awascorrect!Thevariabilityofpricesingeneralissignificantlylargerthanisthevariabilityof(uncertaintyabout)dividendsandhencemanagingpriceriskisofprimaryimportance,whiletheuncertaintyofdividendsisofsecondaryimportance.Theremainingstatementsarecorrect.Question 110 #44949Youranswer:Cwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Gainsorlossesfrommarketingmarketablesecuritiestotheirmarketvalueswillreverseiftheyaresoldandarethustemporarydifferences.Theotherstatementsarecorrect.Question 66 #44903Youranswer:Awascorrect!Whenanalyzingthefirm'sincometaxdisclosures,watchforthesewarningsignals: 1) Companiesthatgeneratesignificantpretaxincomeontheirfinancialstatementswhilereportinglowtaxespayable(i.e.,loweffectivetaxrates)arelikelytobeemployingaggressiveaccountingmethodsandhavelowqualityearnings.SoStatement1iscorrect.2)Restructuringchargestypicallyhavenotaxcashfloweffectsintheyeartheyarerecordedbutmayhavesignificanteffectsinfutureyearsastherestructuredoperationsandimpairedassetsaresold.SoStatement2iscorrectandChoiceAisthecorrectanswer.Ananalystmayalsolookoutforthefollowingadditionalitems:3)Adecreaseincapitalspendingmaysignalareversalofpasttemporarydifferencesrelatedtodepreciationmethods,resultinginhighertaxespayable.4)Temporarydifferencesmayreversebecauseofchangesintaxlaw,causinghighertaxespayable.Question67#44904Youranswer:Cwascorrect!Atakeorpayagreementobligatesabuyertopaythesellerofaproductorserviceaminimumamount,regardlessofwhethertheproductorserviceisdelivered.Thisistreatedasaliability,andthediscountedvaluemustbereflectedonthebuyer抯balancesheet.Question68#44905Youranswer:Cwascorrect!Cisreversed.Grossprofitisrecognizedattheinceptionforthesalestypelease.Question69#449 06 Youranswer:Bwascorrect!N=20;FV =10 00;PV=?94;PMT =60 ;CPT→I/Y=7%kd=(7%) (1? 0.4)=4.2%杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thecurrentaccountmeasurestheexchangeofmerchandisegoods,theexchangeofservices,theexchangeofinvestmentincome,andunilateraltransfers(giftstoandfromothernations).Question44#44878Youranswer:Bwascorrect!Ataminimumwageabovetheequilibriumwage,therewillbeanexcesssupplyofworkers.Firmssubstituteotherproductiveresourcesforlaborandusemorethantheeconomicallyefficientamountofcapital.Theresultisincreasedunemploymentandadecreaseineconomicefficiency.Firmsmaydecreasethequalityorquantityofthenonmonetarybenefitstheypreviouslyofferedtoworkers.Question45#44880Youranswer:Bwascorrect!Ifultimatepaymentisassuredandthecostestimatesareunreliable,thecompanymustusethecompletedcontractmethodandthuscannotrecognizeprofitsuntiltheendofthecontract.Profitsinyear2arezero.Theotherstatementsaretrue.Attheendofyear3,thebalanceinthecashaccountwillbeequaltothecumulativeprofits,or10?7.5=2.5.Underthepercentageofcompletionmethod,thecompanywouldrecognize$1millioninprofitsinyear2Thepercentageofcompletionmethodsmoothsincome,andtheprofitsrecognizedinyear3usingthismethodare(2.5/7.5)2.5=0.833.Question 46 #448 81 Youranswer:Dwascorrect!cashconversioncycle(CCC)=receivablesdays+inventoryprocessingdays?payablespaymentperiodSincethepayablespaymentperiodincreasesreceivablesby3.32daysandreceivablesdaysincreasesby5,CCCincreasesby1 .68 days.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question103#449 41 Youranswer:Dwascorrect!DP/P=DeffectiveDiDP/P=7 .6( +0.0075)=0.057,or5.7%Question104#44942Youranswer:Dwascorrect!Thenominalyield(anothertermforthecouponyield)islessthantheyieldtomaturityforadiscountbond.Question105#44943Youranswer:Dwascorrect!Thekeytermhereiscouponbond.Whileaninvestorinafixedcouponbondcanusuallyeliminatepriceriskbyholdingabonduntilmaturity,thesameisnottrueforreinvestmentrisk.Thereceiptofperiodiccouponpaymentsexposestheinvestortoreinvestmentrisk.Anoncallablebondreducesreinvestmentriskbyreducingtheriskofrepayment.Thus,aninvestormostconcernedwithreinvestmentriskwouldpreferanoncallablebondtoacallablebond.Sincelowercouponbondshavelowerreinvestmentrisk,thissameinvestorwouldpreferalowercouponbondtoahighercouponbond.Aninvestorconcernedaboutreinvestmentriskismostconcernedaboutadecreasinginterestrateenvironment.Wheninterestratesdecrease,theinvestorisforcedtoreinvestcouponsandothercashflowsatalowerrate.Withalowercoupon,thisriskisless.Question1 06 #44945Youranswer:Cwascorrect!AspecialpurposevehicleisalegalentitytowhichtheassetsusedascollateralinanABSissuearesold.Thistransactionseparatesthecompanyprovidingthecollateralfromthecompanythatneedsthefinancing.Theassetstransferredtothespecialpurposevehiclearefinancialassets,notfixedassets.Question107#449 46 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question47#44883Youranswer:Bwascorrect!Becausenetincomeisgiven,thisprobleminvolvesusingtheindirectmethod.Theinterestexpenseisignoredbecauseitisalreadydeductedbeforenetincomeiscalculated.Ignoresalesforthesamereason;netincomeincorporatessales.Question48#44884Youranswer:Awascorrect!Investingcashflowsincludebuyingandsellingequipmentandland.Thisproblemdoesnotinvolveanysuchcashflows.Question49#44885Youranswer:Bwascorrect!Totalcashflowisthedifferencebetweentheendingcashbalanceandthebeginningcashbalance.InQuestions47and48,wecalculatedcashflowfromoperationsof $12 andcashflowfrominvestingof$0,soweneedtocalculatecashflowfromfinancing:Totalcashflowisthus $10 2.Iftheendingcashbalanceis$200,thebeginningcashbalancewas$200? $10 2=$98.Question50#448 86 Netincome+ $10 0Noncashitems:depreciation+2Changeinaccountsreceivable?0Changeininventory?0Changeinaccountspayable?0CFO $12 Saleofcommonstock $10 0Repaymentofdebt?0Financingcashflows$90杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!StandardVI(B)PriorityofTransactions.Clienttransactionsmusttakeprecedenceovermembers?orcandidates?trades.Heshouldhavesubmittedhispersonaltradeorderonlyaftertradingforhisclient.StandardIII(B)FairDealingrequiresthatFarleydealfairlywithallclientswhenrecommendingsecuritiesortakinginvestmentaction.SincetheendowmentfundisFarley抯onlyaccount,hehasnotdisadvantagedanyotherclientbyonlytakingactiononthebehalfoftheendowment.Question15#44837Youranswer:Dwascorrect!StandardIII(A)Loyalty,Prudence,andCare.Membersandcandidatesmustcomplywiththeirfiduciarydutytothosepersonsandinterestsbywhomthedutyisowed.Specifically,membersmustalwaysactforthebenefitoftheirclientsandplaceclients?interestsbeforetheirown.Murphy抯actionsindirectingtradestoCasanovaviolatethefiduciarydutyowedtoWellington&Worrel抯clients,asheappearstobeselectingCasanovaforthediscountsreceivedonpersonalsecuritiestransactions.Casanovachargeshighercommissionratesanddeliverspoorerexecutionthanotherbrokersusedbythefirm.ByusingCasanova,Murphyviolateshisfiduciarydutybyfailingtoactintheclients?bestinterest.Alternatively,thearrangementwithCedrockappearstocomplywithMurphy抯fiduciaryduty,asthefirmreceivesinvestmentresearchusedinmanagingclientportfolios(asoftdollararrangement)andachievesbetterexecutionforclienttrades.BecausethetradingarrangementwithCedrockbenefitsclients,itdoesnotviolateStandardIII(A).Question 16 #44838Youranswer:Bwasincorrect.ThecorrectanswerwasC)DoddhasmostlikelyviolatedStandardIII(B)FairDealingbygivingPhillipsanovergenerousallocationoftheoversubscribed(揾ot?newissue.Theissueisnotthatheisofferingcompensationtoaclienttoresolveadispute,butthatbyoverallocatingtheIPOsharestoPhillipsheisnottreatinghisotherclientsfairly.StandardIII(B)FairDealingrequiresthatcandidatesandmembersnotusesharesof揾otissues?asanincentivetoachievearewardorbenefit.Thebenefitinthiscaseisthatthedisputewill揼oaway.?/SPAN>Question17#44839Youranswer:Dwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Ifthedebtratio(TD/TA)isequalto40%andthefirmhasnopreferredstock,thepercentageofequityis1?0.40,or60%.Question54#44890Youranswer:Bwascorrect!Sharesissuedpostsplitneednotbeadjustedforthesplitastheyare搉ew?shares.Question55#44892Youranswer:Awascorrect!BecausebasicEPSdoesnotadjustforwarrants,theadjustmentis0.DilutedEPSusesaverageprice.SinceAP>EX,Question 56 #44893Youranswer:Dwascorrect!Aisnotnecessarilytrue.Byitself,alowreceivablesturnoverreferstotheaveragetimeittakesthecompanytocollectitsreceivables,nottothelevelofreceivables(whichwillaffect,butnotdictateitscurrentratio).Bisnotnecessarilytrue;whetherafirm抯ROAishigherthanitsROEdependsontherelationofthecostofdebttoitsROA.Cisincorrect.Justthefactthatacompanyhasahighgrossprofitmargindoesnotnecessarilymeanitwillhaveahighnetprofitmargin.Forexample,thecompanycouldhaveveryhighoperatingexpensesandendupwithalownetprofitmargin.Thecashconversioncycleis:( 365 /6) +( 365 /9)?( 365 /12 ) =60 .8+40 .6? 30.4=71days.Question57#44894Youranswer:Cwascorrect!Inperiodsofrisingpricesandstableorincreasinginventoryquantities,FIFO,comparedtoLIFO,resultsinhigherworkingcapital.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thefourfirmconcentrationratiois35% +10 %+20%+30%=95%.TheequivalentnumberoffirmsisthereciprocaloftheHerfindahlindex.Sincethesefivefirmscomprise100%ofthemarket,theHerfindahlindexissotheequivalentnumberoffirmsisQuestion89#44927Youranswer:Awascorrect!Optionfreebondshavepositiveconvexityandtheeffectof(positive)convexityistoincreasethemagnitudeofthepriceincreasewhenyieldsfallandtodecreasethemagnitudeofthepricedecreasewhenyieldsrise.Question90#44928Youranswer:Awascorrect!Duringtherecoveryphaseofthebusinesscycle,cyclicals,commodities,andcommoditylinkedequitiesaregenerallyattractiveinvestments.Question 91 #44929Youranswer:Dwascorrect!IncreasesinkreduceP/E.IncreasesingorthedividendpayoutratioincreaseP/E.Question92#44930Youranswer:Dwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Underlyingearningsshouldbeusedinthecalculation.Thesearetransitory,nonrecurringcomponentsofearningsthatarespecifictothecompany.Also,themostrecentearningsinformationshouldbeusedinthecalculation.Thereforeweget:Question93#449 31 Youranswer:Awascorrect!Theriskpremiumwillbeafunctionofbusinessrisk,financialrisk,liquidityrisk,exchangeraterisk,andcountry(politicalrisk).Stocksdonotinvolvedefaultrisk.Question94#44932Youranswer:Bwascorrect!SemiannualcompoundrateisEndingvaluemustbe$888.94 (1. 0325) 14 = $1, 3 91. 02.Question95#44933Youranswer:Bwascorrect!Thisisasupernormalgrowthstockvaluationproblem.Step1:Findthedividendsinthesupernormalgrowthperiod.D 1 =1. 00 (1. 20)= $1. 20;D2 =1. 2 (1. 2)= $1. 44;D3 =1. 44 (1. 15)= $1 .65 6Step2:Usetheconstantgrowthmodeltofindthepriceattheendofperiod3. $1, 3 91. 02?u> ;1, 000.00facevalueatmaturity3 91. 02?u> 315 .00totalcoupons (14 ×22.50) 76. 02杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Step3:Discountallofthecashflowsbacktotimezero.Question 96 #44934Youranswer:Cwascorrect!Usethesamedividendsand搉ormal?growthpricefromQuestion 96, excepttheperiod1dividend( $1. 20)hasalreadybeenpaid,andwediscounttheremainingtwodividendsandtheend of yearprice(P3)backtotheendofperiod1togetP 1 .Step1:Findthedividendsinthesupernormalgrowthperiod.D2 =1. 2 (1. 2) =1. 44;D3 =1. 44 (1. 15)= $1 .65 6Step2:Usetheconstantgrowthmodeltofindthepriceattheendofperiod3.Step3:Discountallofthecashflowsbacktotimeone.Question97#44935Youranswer:Dwascorrect!TheOASisameasureoftheyieldspreadoverTreasuryspotrateswithouttheoption.Question98#449 36 Youranswer:Cwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Note:Donotaddbackdepreciationwhenusingthedirectmethod.Dividendsareafinancingcashflow.Question 51 #44887Youranswer:Dwascorrect!freecashflow(FCF)=cashflowfromoperations?netcapitalexpendituresFCF=$800?40(purchaseofplantandequipment)+30(saleofland)=$790Question52#44888Youranswer:Cwascorrect!Asimplenumericalexamplecanhelp.AssumeCA=2andCL =1. ThennoteandDebtisdecreased,butequityisunchanged,soD/Eisdecreased.Question53#44889Youranswer:Cwascorrect!Sales牋+$4,000牋Cashreceivedfromcustomers牋牋+$4,000(sincenochangeinAR)Costofgoodssold牋?,000?/td>Increaseininventory牋?00?/td>Increaseinaccountspayable牋+300?/td>Othercashinputexpenses牋?00?/td>Cashpaidforinputs牋牋牋?,300Cashpaidfortaxes牋牋牋?00Cashflowfromoperations牋?/td> ?1, 500杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！TheeightmajorsectionsoftheCFAInstituteGlobalInvestmentPerformanceStandardsareFundamentalsofCompliance,InputData,CalculationMethodology,CompositeConstruction,Disclosures,PresentationandReporting,RealEstate,andPrivateEquity.Question18#44840Youranswer:Bwascorrect!StandardIII(C)Suitabilityrequiresthattheclientportfoliofittheclientriskandreturnobjectivesasstatedintheinvestmentpolicystatement,andthatseemstobethecasehere.Theproperfocusofriskanalysisisontheentireportfolioandneednotbeappliedonanissuebyissuebasis.ThereappearstobenoviolationofV(A)DiligenceandReasonableBasissincehispreviousanalysisindicatedtheportfoliowassuitableandhisrecordssupportedthatconclusion.Question19#448 41 Youranswer:Bwascorrect!Withnointerestpaidontheoriginal$5,000loan,at6%infiveyearstheloanbalancewillbe:Newloanbalance=$5,000 (1. 06) 5= $6, 6 91. 13orPV=5,000;I/Y =6 N=5;PMT=0;CPT→FV= ?6, 6 91. 13. $6, 6 91. 13istheloanthathastoberetiredoverthenextfiveyears.Thefinancialcalculatorsolutionis:PV =6, 6 91. 13;I/Y =6 N=5;CPT→PMT.YouobtainPMT=?,588.45.Question20#44844Youranswer:Cwascorrect!N=4;PV=?,000;FV =6, 520;CPT→I/Y =12 .99%,orQuestion 21 #44845Youranswer:Cwascorrect!AandBdescribeahistogram,andDdescribesafrequencypolygon.Question22#448 46 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Awascorrect!holdingperiodreturn(HPR)=Question23#44847Youranswer:Cwascorrect!range=maximumvalue?minimumvalue=55 ?15 =40Calculatethemean:Togetthemeanabsolutedeviation,sumthedeviationsaroundthemean(ignoringthesign),anddividebythenumberofobservationsNotethattheunitsofvarianceherearepercentsquared.Usingdecimalsratherthanwholepercentyields0.0250.Question24#44848Youranswer:Bwascorrect!Question25#44849杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question58#44895Youranswer:Awascorrect!Question59#448 96 Youranswer:Awascorrect!Question60#44897Youranswer:Dwascorrect!FIFOendinginventory=FIFOINV=LIFOINV+LIFOreserve=22,000+4,000=$ 26, 000Question 61 #44898Youranswer:Bwascorrect!Thetotalcashflowsareequal,buttheexpensingfirmwillseelowerearlyyearprofitabilityratherthanhigherearlyyearprofitability.Question62#44899Youranswer:Cwascorrect!Impairmentmustberecognizedwhenthereissufficientevidencetoindicatethatthevalueofanassetcarriedonthebooksofacompanycannotberecovered.Indicatorsoflackofrecoverabilityincludeasignificantdecreaseinmarketvalue,adversechangesinlegalorbusinessconditions,substantialcostoverruns,andasignificantdeclineinanasset抯longtermlikelihoodofgeneratingprofit. 10 0@$ 210 =$ 21, 00070@$225= $15 ,750$ 36, 750Purchases 19 0Sales 17 0Balance20@$ 210 =$4,200FIFOaftertaxprofit=LIFOaftertaxprofit+(changeinLIFOreserve) (1? t)=$2,000+($4,000?$3,000) (1? 0.4)=$2,000+ $60 0=$2 ,60 0杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Forthepositivelyskeweddistribution,themodeislessthanthemedian,whichislessthanthemean.Question 26 #44850Youranswer:Bwasincorrect.ThecorrectanswerwasA)ThenominalincreaseinindustrialproductionisexpectedtobeThustherealchangeisexpectedtobeGiventheregressionequation,ourforecastis9,397.54=8,950+395 (1. 133).Question27#448 51 Youranswer:Awascorrect!ThefirstyearaccountreturnwasThesecondyearreturnwasThegeometricmeanis,whichisthetimeweightedreturn.Sinceonlyoneassetwasinvolved,alsogivesthetimeweightedreturn.Tocalculatethemoneyweightedreturn,usethecashflowfunctionwithCf0=?2,000,Cf1=?5,000,andCf2=54,000×2 =10 8,000,andcomputeIRR,whichis7.73%.Themoneyweightedreturnislowerbecausetheamountintheaccountwasgreaterinthesecondperiod,whenthereturnwaspoor.Question28#44858Youranswer:Dwascorrect!Thebinomialdistributionisadiscretedistribution,whilethenormaldistributionisanexampleofacontinuousdistribution.Univariateandmultivariatedistributionscanbediscreteorcontinuous.Question29#44859杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question10#44832Youranswer:Bwascorrect!AccordingtoStandardIV(B)AdditionalCompensationArrangements,membersandcandidatesmustobtainwrittenpermissionfromtheiremployerbeforeacceptinganofferofcompensation(fortheperformanceofworkdonefortheiremployer)inadditiontowhattheyreceivefromtheiremployerandthatiscontingentonfutureperformance.Suchcontingentadditionalcompensationisjudgedtobereasonablyexpectedtoimpairtheemployee抯independenceandobjectivity.Question 11 #44833Youranswer:Awasincorrect.ThecorrectanswerwasD)CompliancerequiresthatthefirmfollowlocallawanddisclosetheconflictbetweenlocallawandGIPS.Question12#44834Youranswer:Awascorrect!StandardIII(D)PerformancePresentationrequiresthatstatementsaboutperformancebenotonlyaccurate,butalsofairandcomplete.WhileVance抯statementmaybeaccurateinatechnicalsense,itisneitherfairnorcomplete,anditseemsintendedtomisleadprospectsaboutVance抯trackrecordinmanagingequitiesaccountsand/orselectingequitysecurities.WhilecompliancewithGIPSanditsmethodsofcompositeconstructionarerecommended,theyarenotrequiredbytheStandard.Question13#44835Youranswer:Dwascorrect!StandardV(B)CommunicationwithClientsandProspectiveClients.Briefcommunicationsmustbesupportedbybackgroundreportsordatathatcanbemadeavailabletotheclientifrequested.Drakeshouldhavegiventheclientamoredetailedanalysisoftheinvestmentwhentheclientcalledtorequestsuchinformation.DrakedidnotviolateStandardIII(C)becausehe搕horoughly?readandevaluatedtheanalysisanddeterminedthatthestructuredproductwasinlinewithhisclient抯objectivesbeforerecommendingtheproducttohisclient.Question14#448 36 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！SchweserPrintableAnswers Book6 Exam1 AM TestID# :1 364 808Question1#447 86 Youranswer:Cwascorrect!StandardVI(C)ReferralFees.Membersandcandidatesshalldisclosetoclientsandprospectsanyconsiderationorbenefitreceivedbythememberordeliveredtoothersfortherecommendationofanyservicetotheclientorprospect.Thisallowstheclienttoevaluateanypartialityshowninmakingreferrals.Question2#44787Youranswer:Awascorrect!StandardIV(C)ResponsibilitiesofSupervisorsexplicitlystatesthatspeakingtotheemployeetodeterminetheextentoftheviolationsandreceivingassurancesthatitwillnotberepeatedisnotenough.Finleymusttakepositivestepstoinsurethattheviolationwillnotberepeatedincludingpromptlylaunchinganinvestigationandlimitingtheemployee抯activitiesand/orincreasingsupervisionoftheemployeduntiltheresultsoftheinvestigationareknown.Question3#44788Youranswer:Awascorrect!SteinviolatedStandardI(C)Misrepresentationbypresentingmaterialdevelopedbyanotherwithoutacknowledgement.Question4#44789Youranswer:Dwascorrect!StandardV(A)DiligenceandReasonableBasis.Therecommendationreflectstheconsensusofthegroupandnotnecessarilytheopinionofthememberorcandidate.Iftheconsensusopinionhasareasonablebasis,thememberdoesnothavetodissociatefromthereportbutshoulddocumentthedifferenceofopinion.Question5#44825杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!Thisisanout of themoneycoveredcall.Thestockcangoup$2tothestrikeprice,andthenthewriterwillget$3forthepremium.Thus,themaximumprofitis$5.Question 114 #44953Youranswer:Dwasincorrect.ThecorrectanswerwasB)Bothstatementsareincorrect.Asyieldsrise,thevalueoftheembeddedputoptioninaputablebondincreasesand(beyondacriticalpoint)reducesthedeclineinthevalueofthebondcomparedtoasimilaroptionfreebond.Asyieldsfall,thevalueoftheembeddedputoptiondecreases,and(beyondacriticalpoint)theputablebondbehavesmuchthesameasasimilaroptionfreebondsincetheembeddedputoptionhaslittleornovalue.Question 115 #44954Youranswer:Bwasincorrect.ThecorrectanswerwasD)Theincomeapproachusesnetoperatingincomebeforefinancingandtaxes.Hedonicpriceestimationusessimilarpropertiestodeterminetheappropriateregressioncoefficients.Question1 16 #44955Youranswer:Dwascorrect!aftertaxcashflow=(revenue?cost?depreciation) (1? t)+depreciation(revenue?cost) (1? t)+depreciation(t)[$250,000?(0.04×$250,000)? $15 ,000?( $1, 000,000×0.0 26) ] (1? 0.35)+ (1, 000,000×0.0 26) [($250,000? $10 ,000? $15 ,000?$ 26, 000)(0 .65 )]+$ 26, 000= $15 5,350Question 117 #449 56 Youranswer:Bwascorrect!Historicalriskandreturndataisgenerallylimitedandnotveryeasytoobtain.Question 118 #44957杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Studieshavedemonstratedthatapproximately90%ofaportfolio抯returnscanbeexplainedbyitstargetassetallocations.Itisverydifficulttogenerateabnormalportfolioreturnsbymarkettimingandsecurityselectionwithinassetclasses.Question85#44923Youranswer:Awascorrect!Marketweightedindex:Day1:whichisscaledtoavalueof500.Day2:whichnowhastobeadjustedrelativetotheinitialbasevalueof500fromday1.Weget:Finally,thepercentagechangeisQuestion 86 #44924Youranswer:Awascorrect!AportfoliowithequalnumbersofsharesofeachstockintheDJIAwillmatchtheperformanceoftheindexassumingtherearenostocksplits,stockdividends,orchangesinthemakeupoftheindex.Thereturnontheindexdoesnotincludedividendpayments.Sincethereinvesteddividendswilladdtothenumberofsharesofthosestocksthatpaydividends,Gomez抯portfolioreturnwillexceedthatoftheDJIA.Question87#44925Youranswer:Cwascorrect!Thetopdown,threestepprocessgoesfromtheeconomytotheindustrytothefirm,inthatorder.Question88#449 26 ... 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question79#449 16 Youranswer:Dwasincorrect.ThecorrectanswerwasC)Theintroductionofazerobeta(nosystematicrisk)portfoliowithareturnthatishigherthantheriskfreeratecanresultinastraightCMLevenwiththeassumptionthatborrowingandlendingratesaredifferent.Marginaccountsrepresentborrowing,sounlessthemarginlendingrateisthesameastheriskfreerate,thisdoesnotsolvetheproblem(akinkedCML)thatresultsfromunequalborrowingandlendingratesinthemodel.Question80#44 917 Youranswer:Dwascorrect!TheStandardsofPracticehaveverylittletodowithinvestmentconstraints.Question 81 #44 918 Youranswer:Awascorrect!Ariskaverseinvestorpreferslessrisktomorerisk.Thelowerthecorrelation,thegreatertheriskreduction.Thus,ariskaverseinvestorwouldmostprefertheportfoliowiththelowestcorrelationcoefficientandleastprefertheonewiththehighest.Ofthechoicesgiven,AandC抯correlationcoefficientof+0.6isthehighest.Question82#44 919 Youranswer:Bwascorrect!TheCAPMconcludesthatexpectedreturnsareapositive(linear)functionofsystematicrisk.Question83#44920Youranswer:Cwascorrect!TheSMLandCMLarebothlines,andbothintersecttheverticalaxisattheriskfreerate.TheSMLdescribestherisk/returntradeoffforindividualsecuritiesorportfolios,whereastheCMLdescribestherisk/returntradeoffofvariouscombinationsofthemarketportfolioandarisklessasset.Question84#44922杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question70#44907Youranswer:Bwascorrect!$2/50+0.08 =12 .0%Question 71 #44908Youranswer:Bwascorrect!Question72#44909Youranswer:Bwascorrect!Businessriskisthecombinationofsalesrisk,whichisthevariabilityofafirm'ssales,andoperatingrisk,whichistheadditionalvariabilityinoperatingearnings(EBIT)causedbyfixedoperatingcosts.Leverageisthecombinationofbusinessriskandfinancialrisk,whichistheadditionalriskcommonshareholdersmustbearwhenafirmusesfixedcostsourcesoffinancing.Question73#44 910 Youranswer:Dwascorrect!Sinceequityis40%ofassets,theequitymultiplieris1/0.40=2.5.UsingthetraditionalDuPontformula,ROE=8.7%×2.4×2.5=52.2%.Question74#44 911 Youranswer:Dwascorrect!g= (1? payout)(ROE)= (1? 0.40)( 16 % )=9 .6% 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!About68%ofallobservationsfallwithin?standarddeviationofthemean.Thus,about68%ofthevaluesfallbetween5and25.Question30#44 860 Youranswer:Bwascorrect!Thecentrallimittheoremholdsforanydistributionaslongasthesamplesizeislarge(i.e.,n>30).Question 31 #44 8 61 Youranswer:Bwascorrect!Thepopulationvarianceisknown(inthiscase100),sothestandarderrorofthesamplemeanisQuestion32#44 863 Youranswer:Cwascorrect!Thettestisusedwhenthesamplesizeissmall.Question33#44 864 Youranswer:Dwascorrect!Itwoulddecrease,notincrease,theprofitabilityofcorporateinvestmentprojects.Question34#44 865 Youranswer:Awascorrect!Thepotentialdepositexpansionmultiplieristhereciprocalofthereserveratio.Ifthereserveratiois20%,then1/0.20=5.Question35#44 866 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question75#44 912 Youranswer:Awascorrect!Straightlinedepreciation: $14 million/7=$2.0millionAccelerateddepreciation: $14 million×0.333=$4 .66 2millionQuestion 76 #44 913 Youranswer:Awascorrect!Sunkcostsarenottobeincludedininvestmentanalysis.Opportunitycosts,changesinnetworkingcapital,andtheproject抯impactontaxesareallrelevantvariablesindeterminingprojectcashflowforacapitalinvestment.Question77#44 914 Youranswer:Bwascorrect!Forthe4yearperiod,theaveragenetincomeis:($42,000+$98,000+$ 56, 000+$ 56, 000)/4= $63 ,000.Theinitialbookvalueis$800,000,decliningby$200,000peryearuntilthefinalbookvalueis$0.Theaveragebookvalueforthisassetis:($800,000?$0)/2=$400,000.Theaverageaccountingrateofreturnis:AAR=averagenetincome/averagebookvalue= $63 ,000/$400,000=0 .15 75 =15 .75%.Question78#44 915 Youranswer:Cwascorrect!Regularlyreviewingperformance,independence,skills,andexperienceofexistingboardmembersisacharacteristicoftheRemunerations/CompensationCommittee,nottheAuditCommittee.AllotherchoicesarepositivecharacteristicsoftheAuditCommittee.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Firstyearinterestis10%×$2million=$200,000.Firstyearprincipalpayment=234, 919 200,000=$34, 919 .Firstyearaftertaxcashflowis[300,000200,000 60 ,00035,000] (1 0.35)34, 919 + 60 ,000=28,3 31. Remainingprincipalbalanceis2million34, 919 =1, 965 ,081sosecondyearinterestis 1 96, 508andprincipalportionofthepaymentis234, 919 1 96, 508=38, 411 Secondyearaftertaxcashflowis[300,000 1 96, 508 60 ,00035,000] (1 0.35)38, 411 + 60 ,000=27 ,10 9.Includingtheproceedsofthesalethetotalsecondyearaftertaxcashflowis637 ,10 9.NPV==$52,2 91. 81 Question 111 #44950Youranswer:Dwascorrect!Thefourfirmconcentrationratioisthesumofthemarketsharesofthefourlargestfirmsintheindustry.45%+25% +15 % +10 %=95TheHerfindahlindexisthesumofthesquaresofthemarketsharesofeachofthefirmsintheindustry.0.452+0.252+0 .15 2+0 .10 2+0.052=0.30Question 112 #449 51 Youranswer:Bwascorrect!Thisstatementiscorrectinthatthecostofaputoptionisnegative.(Theinvestorhastopayfortheflexibilityoftheputoption.)Theotherstatementscouldnotbecorrect.The搒preadoverthespotratesforaTreasurysecuritysimilartoStahl抯bond?referstoZspreadonthebond.Foracallablebond,theOAS<Zspread,sothiscouldnotbeatruestatementbecause 13 5bp> ;11 0bp.TheoptioncostiscalculatedusingtheOASandtheZspread,notthenominalspread.Thestaticspread(orZspread)isthespreadovereachofthespotratesinagivenTreasurytermstructure,notthespreadovertheTreasury抯YTM.(Note:Weslippedinafixedincomequestionhereinthederivativessectionofthetest.CFAInstitutecandothisatanytime.Beonyourguardforthesetypesoftricks!)Question 113 #44952杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!Note:Question108#44947Youranswer:Dwascorrect!Aflattermstructurecouldbeexplainedaccordingtotheliquiditypreferencetheoryasacasewhereinvestorsexpectshorttermratestodeclineslightly,coupledwithamaturitypremiumthatexactlyoffsetsthedownwardpressurecontainedininvestorexpectations.Ahumpedtermstructurecouldbeexplainedaccordingtothepureexpectationstheoryifwebelievethatforshortermaturities,investorsbelieveinterestrateswillrisealongwiththebeliefthatmediumtermrateswilldeclinealongwiththebeliefthatlongertermrateswillbestable.Thepureexpectationstheorymakesnospecificmentionofthefactthatanupwardslopingtermstructureisaconsequenceofinvestorsexpectingshorttermratestoremainunchangedforaperiodoftimefollowedbyinvestorsexpectingshorttermratestoriseforaperiodoftime.Allthistheorysaysisthatanupwardslopingtermstructurecanbeexplainedbyinvestorsbelievingthatfutureshorttermrateswillrise.Finally,theliquiditypreferencetheoryattemptstoexplainthetermstructureaccordingtotwofactors.Theseareexpectationsaboutfutureinterestratesandamaturitypremiumtocompensateforinterestraterisk.Ifthetermstructureisdeclining,thiscouldbeexplainedsimplybyinvestorexpectationsofdecliningfutureshorttermratescoupledwithamaturitypremiumthatisnotlargeenoughtooffsetthedownwardpressureoninterestratesduetoinvestorexpectations.Question109#44948Youranswer:Awascorrect!Thevariabilityofpricesingeneralissignificantlylargerthanisthevariabilityof(uncertaintyabout)dividendsandhencemanagingpriceriskisofprimaryimportance,whiletheuncertaintyofdividendsisofsecondaryimportance.Theremainingstatementsarecorrect.Question 110 #44949Youranswer:Cwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Gainsorlossesfrommarketingmarketablesecuritiestotheirmarketvalueswillreverseiftheyaresoldandarethustemporarydifferences.Theotherstatementsarecorrect.Question 66 #44903Youranswer:Awascorrect!Whenanalyzingthefirm'sincometaxdisclosures,watchforthesewarningsignals: 1) Companiesthatgeneratesignificantpretaxincomeontheirfinancialstatementswhilereportinglowtaxespayable(i.e.,loweffectivetaxrates)arelikelytobeemployingaggressiveaccountingmethodsandhavelowqualityearnings.SoStatement1iscorrect.2)Restructuringchargestypicallyhavenotaxcashfloweffectsintheyeartheyarerecordedbutmayhavesignificanteffectsinfutureyearsastherestructuredoperationsandimpairedassetsaresold.SoStatement2iscorrectandChoiceAisthecorrectanswer.Ananalystmayalsolookoutforthefollowingadditionalitems:3)Adecreaseincapitalspendingmaysignalareversalofpasttemporarydifferencesrelatedtodepreciationmethods,resultinginhighertaxespayable.4)Temporarydifferencesmayreversebecauseofchangesintaxlaw,causinghighertaxespayable.Question67#44904Youranswer:Cwascorrect!Atakeorpayagreementobligatesabuyertopaythesellerofaproductorserviceaminimumamount,regardlessofwhethertheproductorserviceisdelivered.Thisistreatedasaliability,andthediscountedvaluemustbereflectedonthebuyer抯balancesheet.Question68#44905Youranswer:Cwascorrect!Cisreversed.Grossprofitisrecognizedattheinceptionforthesalestypelease.Question69#449 06 Youranswer:Bwascorrect!N=20;FV =10 00;PV=?94;PMT =60 ;CPT→I/Y=7%kd=(7%) (1? 0.4)=4.2%杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thecurrentaccountmeasurestheexchangeofmerchandisegoods,theexchangeofservices,theexchangeofinvestmentincome,andunilateraltransfers(giftstoandfromothernations).Question44#44878Youranswer:Bwascorrect!Ataminimumwageabovetheequilibriumwage,therewillbeanexcesssupplyofworkers.Firmssubstituteotherproductiveresourcesforlaborandusemorethantheeconomicallyefficientamountofcapital.Theresultisincreasedunemploymentandadecreaseineconomicefficiency.Firmsmaydecreasethequalityorquantityofthenonmonetarybenefitstheypreviouslyofferedtoworkers.Question45#44880Youranswer:Bwascorrect!Ifultimatepaymentisassuredandthecostestimatesareunreliable,thecompanymustusethecompletedcontractmethodandthuscannotrecognizeprofitsuntiltheendofthecontract.Profitsinyear2arezero.Theotherstatementsaretrue.Attheendofyear3,thebalanceinthecashaccountwillbeequaltothecumulativeprofits,or10?7.5=2.5.Underthepercentageofcompletionmethod,thecompanywouldrecognize$1millioninprofitsinyear2Thepercentageofcompletionmethodsmoothsincome,andtheprofitsrecognizedinyear3usingthismethodare(2.5/7.5)2.5=0.833.Question 46 #448 81 Youranswer:Dwascorrect!cashconversioncycle(CCC)=receivablesdays+inventoryprocessingdays?payablespaymentperiodSincethepayablespaymentperiodincreasesreceivablesby3.32daysandreceivablesdaysincreasesby5,CCCincreasesby1 .68 days.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question103#449 41 Youranswer:Dwascorrect!DP/P=DeffectiveDiDP/P=7 .6( +0.0075)=0.057,or5.7%Question104#44942Youranswer:Dwascorrect!Thenominalyield(anothertermforthecouponyield)islessthantheyieldtomaturityforadiscountbond.Question105#44943Youranswer:Dwascorrect!Thekeytermhereiscouponbond.Whileaninvestorinafixedcouponbondcanusuallyeliminatepriceriskbyholdingabonduntilmaturity,thesameisnottrueforreinvestmentrisk.Thereceiptofperiodiccouponpaymentsexposestheinvestortoreinvestmentrisk.Anoncallablebondreducesreinvestmentriskbyreducingtheriskofrepayment.Thus,aninvestormostconcernedwithreinvestmentriskwouldpreferanoncallablebondtoacallablebond.Sincelowercouponbondshavelowerreinvestmentrisk,thissameinvestorwouldpreferalowercouponbondtoahighercouponbond.Aninvestorconcernedaboutreinvestmentriskismostconcernedaboutadecreasinginterestrateenvironment.Wheninterestratesdecrease,theinvestorisforcedtoreinvestcouponsandothercashflowsatalowerrate.Withalowercoupon,thisriskisless.Question1 06 #44945Youranswer:Cwascorrect!AspecialpurposevehicleisalegalentitytowhichtheassetsusedascollateralinanABSissuearesold.Thistransactionseparatesthecompanyprovidingthecollateralfromthecompanythatneedsthefinancing.Theassetstransferredtothespecialpurposevehiclearefinancialassets,notfixedassets.Question107#449 46 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question47#44883Youranswer:Bwascorrect!Becausenetincomeisgiven,thisprobleminvolvesusingtheindirectmethod.Theinterestexpenseisignoredbecauseitisalreadydeductedbeforenetincomeiscalculated.Ignoresalesforthesamereason;netincomeincorporatessales.Question48#44884Youranswer:Awascorrect!Investingcashflowsincludebuyingandsellingequipmentandland.Thisproblemdoesnotinvolveanysuchcashflows.Question49#44885Youranswer:Bwascorrect!Totalcashflowisthedifferencebetweentheendingcashbalanceandthebeginningcashbalance.InQuestions47and48,wecalculatedcashflowfromoperationsof $12 andcashflowfrominvestingof$0,soweneedtocalculatecashflowfromfinancing:Totalcashflowisthus $10 2.Iftheendingcashbalanceis$200,thebeginningcashbalancewas$200? $10 2=$98.Question50#448 86 Netincome+ $10 0Noncashitems:depreciation+2Changeinaccountsreceivable?0Changeininventory?0Changeinaccountspayable?0CFO $12 Saleofcommonstock $10 0Repaymentofdebt?0Financingcashflows$90杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!StandardVI(B)PriorityofTransactions.Clienttransactionsmusttakeprecedenceovermembers?orcandidates?trades.Heshouldhavesubmittedhispersonaltradeorderonlyaftertradingforhisclient.StandardIII(B)FairDealingrequiresthatFarleydealfairlywithallclientswhenrecommendingsecuritiesortakinginvestmentaction.SincetheendowmentfundisFarley抯onlyaccount,hehasnotdisadvantagedanyotherclientbyonlytakingactiononthebehalfoftheendowment.Question15#44837Youranswer:Dwascorrect!StandardIII(A)Loyalty,Prudence,andCare.Membersandcandidatesmustcomplywiththeirfiduciarydutytothosepersonsandinterestsbywhomthedutyisowed.Specifically,membersmustalwaysactforthebenefitoftheirclientsandplaceclients?interestsbeforetheirown.Murphy抯actionsindirectingtradestoCasanovaviolatethefiduciarydutyowedtoWellington&Worrel抯clients,asheappearstobeselectingCasanovaforthediscountsreceivedonpersonalsecuritiestransactions.Casanovachargeshighercommissionratesanddeliverspoorerexecutionthanotherbrokersusedbythefirm.ByusingCasanova,Murphyviolateshisfiduciarydutybyfailingtoactintheclients?bestinterest.Alternatively,thearrangementwithCedrockappearstocomplywithMurphy抯fiduciaryduty,asthefirmreceivesinvestmentresearchusedinmanagingclientportfolios(asoftdollararrangement)andachievesbetterexecutionforclienttrades.BecausethetradingarrangementwithCedrockbenefitsclients,itdoesnotviolateStandardIII(A).Question 16 #44838Youranswer:Bwasincorrect.ThecorrectanswerwasC)DoddhasmostlikelyviolatedStandardIII(B)FairDealingbygivingPhillipsanovergenerousallocationoftheoversubscribed(揾ot?newissue.Theissueisnotthatheisofferingcompensationtoaclienttoresolveadispute,butthatbyoverallocatingtheIPOsharestoPhillipsheisnottreatinghisotherclientsfairly.StandardIII(B)FairDealingrequiresthatcandidatesandmembersnotusesharesof揾otissues?asanincentivetoachievearewardorbenefit.Thebenefitinthiscaseisthatthedisputewill揼oaway.?/SPAN>Question17#44839Youranswer:Dwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Ifthedebtratio(TD/TA)isequalto40%andthefirmhasnopreferredstock,thepercentageofequityis1?0.40,or60%.Question54#44890Youranswer:Bwascorrect!Sharesissuedpostsplitneednotbeadjustedforthesplitastheyare搉ew?shares.Question55#44892Youranswer:Awascorrect!BecausebasicEPSdoesnotadjustforwarrants,theadjustmentis0.DilutedEPSusesaverageprice.SinceAP>EX,Question 56 #44893Youranswer:Dwascorrect!Aisnotnecessarilytrue.Byitself,alowreceivablesturnoverreferstotheaveragetimeittakesthecompanytocollectitsreceivables,nottothelevelofreceivables(whichwillaffect,butnotdictateitscurrentratio).Bisnotnecessarilytrue;whetherafirm抯ROAishigherthanitsROEdependsontherelationofthecostofdebttoitsROA.Cisincorrect.Justthefactthatacompanyhasahighgrossprofitmargindoesnotnecessarilymeanitwillhaveahighnetprofitmargin.Forexample,thecompanycouldhaveveryhighoperatingexpensesandendupwithalownetprofitmargin.Thecashconversioncycleis:( 365 /6) +( 365 /9)?( 365 /12 ) =60 .8+40 .6? 30.4=71days.Question57#44894Youranswer:Cwascorrect!Inperiodsofrisingpricesandstableorincreasinginventoryquantities,FIFO,comparedtoLIFO,resultsinhigherworkingcapital.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thefourfirmconcentrationratiois35% +10 %+20%+30%=95%.TheequivalentnumberoffirmsisthereciprocaloftheHerfindahlindex.Sincethesefivefirmscomprise100%ofthemarket,theHerfindahlindexissotheequivalentnumberoffirmsisQuestion89#44927Youranswer:Awascorrect!Optionfreebondshavepositiveconvexityandtheeffectof(positive)convexityistoincreasethemagnitudeofthepriceincreasewhenyieldsfallandtodecreasethemagnitudeofthepricedecreasewhenyieldsrise.Question90#44928Youranswer:Awascorrect!Duringtherecoveryphaseofthebusinesscycle,cyclicals,commodities,andcommoditylinkedequitiesaregenerallyattractiveinvestments.Question 91 #44929Youranswer:Dwascorrect!IncreasesinkreduceP/E.IncreasesingorthedividendpayoutratioincreaseP/E.Question92#44930Youranswer:Dwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Underlyingearningsshouldbeusedinthecalculation.Thesearetransitory,nonrecurringcomponentsofearningsthatarespecifictothecompany.Also,themostrecentearningsinformationshouldbeusedinthecalculation.Thereforeweget:Question93#449 31 Youranswer:Awascorrect!Theriskpremiumwillbeafunctionofbusinessrisk,financialrisk,liquidityrisk,exchangeraterisk,andcountry(politicalrisk).Stocksdonotinvolvedefaultrisk.Question94#44932Youranswer:Bwascorrect!SemiannualcompoundrateisEndingvaluemustbe$888.94 (1. 0325) 14 = $1, 3 91. 02.Question95#44933Youranswer:Bwascorrect!Thisisasupernormalgrowthstockvaluationproblem.Step1:Findthedividendsinthesupernormalgrowthperiod.D 1 =1. 00 (1. 20)= $1. 20;D2 =1. 2 (1. 2)= $1. 44;D3 =1. 44 (1. 15)= $1 .65 6Step2:Usetheconstantgrowthmodeltofindthepriceattheendofperiod3. $1, 3 91. 02?u> ;1, 000.00facevalueatmaturity3 91. 02?u> 315 .00totalcoupons (14 ×22.50) 76. 02杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Step3:Discountallofthecashflowsbacktotimezero.Question 96 #44934Youranswer:Cwascorrect!Usethesamedividendsand搉ormal?growthpricefromQuestion 96, excepttheperiod1dividend( $1. 20)hasalreadybeenpaid,andwediscounttheremainingtwodividendsandtheend of yearprice(P3)backtotheendofperiod1togetP 1 .Step1:Findthedividendsinthesupernormalgrowthperiod.D2 =1. 2 (1. 2) =1. 44;D3 =1. 44 (1. 15)= $1 .65 6Step2:Usetheconstantgrowthmodeltofindthepriceattheendofperiod3.Step3:Discountallofthecashflowsbacktotimeone.Question97#44935Youranswer:Dwascorrect!TheOASisameasureoftheyieldspreadoverTreasuryspotrateswithouttheoption.Question98#449 36 Youranswer:Cwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Note:Donotaddbackdepreciationwhenusingthedirectmethod.Dividendsareafinancingcashflow.Question 51 #44887Youranswer:Dwascorrect!freecashflow(FCF)=cashflowfromoperations?netcapitalexpendituresFCF=$800?40(purchaseofplantandequipment)+30(saleofland)=$790Question52#44888Youranswer:Cwascorrect!Asimplenumericalexamplecanhelp.AssumeCA=2andCL =1. ThennoteandDebtisdecreased,butequityisunchanged,soD/Eisdecreased.Question53#44889Youranswer:Cwascorrect!Sales牋+$4,000牋Cashreceivedfromcustomers牋牋+$4,000(sincenochangeinAR)Costofgoodssold牋?,000?/td>Increaseininventory牋?00?/td>Increaseinaccountspayable牋+300?/td>Othercashinputexpenses牋?00?/td>Cashpaidforinputs牋牋牋?,300Cashpaidfortaxes牋牋牋?00Cashflowfromoperations牋?/td> ?1, 500杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！TheeightmajorsectionsoftheCFAInstituteGlobalInvestmentPerformanceStandardsareFundamentalsofCompliance,InputData,CalculationMethodology,CompositeConstruction,Disclosures,PresentationandReporting,RealEstate,andPrivateEquity.Question18#44840Youranswer:Bwascorrect!StandardIII(C)Suitabilityrequiresthattheclientportfoliofittheclientriskandreturnobjectivesasstatedintheinvestmentpolicystatement,andthatseemstobethecasehere.Theproperfocusofriskanalysisisontheentireportfolioandneednotbeappliedonanissuebyissuebasis.ThereappearstobenoviolationofV(A)DiligenceandReasonableBasissincehispreviousanalysisindicatedtheportfoliowassuitableandhisrecordssupportedthatconclusion.Question19#448 41 Youranswer:Bwascorrect!Withnointerestpaidontheoriginal$5,000loan,at6%infiveyearstheloanbalancewillbe:Newloanbalance=$5,000 (1. 06) 5= $6, 6 91. 13orPV=5,000;I/Y =6 N=5;PMT=0;CPT→FV= ?6, 6 91. 13. $6, 6 91. 13istheloanthathastoberetiredoverthenextfiveyears.Thefinancialcalculatorsolutionis:PV =6, 6 91. 13;I/Y =6 N=5;CPT→PMT.YouobtainPMT=?,588.45.Question20#44844Youranswer:Cwascorrect!N=4;PV=?,000;FV =6, 520;CPT→I/Y =12 .99%,orQuestion 21 #44845Youranswer:Cwascorrect!AandBdescribeahistogram,andDdescribesafrequencypolygon.Question22#448 46 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Awascorrect!holdingperiodreturn(HPR)=Question23#44847Youranswer:Cwascorrect!range=maximumvalue?minimumvalue=55 ?15 =40Calculatethemean:Togetthemeanabsolutedeviation,sumthedeviationsaroundthemean(ignoringthesign),anddividebythenumberofobservationsNotethattheunitsofvarianceherearepercentsquared.Usingdecimalsratherthanwholepercentyields0.0250.Question24#44848Youranswer:Bwascorrect!Question25#44849杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question58#44895Youranswer:Awascorrect!Question59#448 96 Youranswer:Awascorrect!Question60#44897Youranswer:Dwascorrect!FIFOendinginventory=FIFOINV=LIFOINV+LIFOreserve=22,000+4,000=$ 26, 000Question 61 #44898Youranswer:Bwascorrect!Thetotalcashflowsareequal,buttheexpensingfirmwillseelowerearlyyearprofitabilityratherthanhigherearlyyearprofitability.Question62#44899Youranswer:Cwascorrect!Impairmentmustberecognizedwhenthereissufficientevidencetoindicatethatthevalueofanassetcarriedonthebooksofacompanycannotberecovered.Indicatorsoflackofrecoverabilityincludeasignificantdecreaseinmarketvalue,adversechangesinlegalorbusinessconditions,substantialcostoverruns,andasignificantdeclineinanasset抯longtermlikelihoodofgeneratingprofit. 10 0@$ 210 =$ 21, 00070@$225= $15 ,750$ 36, 750Purchases 19 0Sales 17 0Balance20@$ 210 =$4,200FIFOaftertaxprofit=LIFOaftertaxprofit+(changeinLIFOreserve) (1? t)=$2,000+($4,000?$3,000) (1? 0.4)=$2,000+ $60 0=$2 ,60 0杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Forthepositivelyskeweddistribution,themodeislessthanthemedian,whichislessthanthemean.Question 26 #44850Youranswer:Bwasincorrect.ThecorrectanswerwasA)ThenominalincreaseinindustrialproductionisexpectedtobeThustherealchangeisexpectedtobeGiventheregressionequation,ourforecastis9,397.54=8,950+395 (1. 133).Question27#448 51 Youranswer:Awascorrect!ThefirstyearaccountreturnwasThesecondyearreturnwasThegeometricmeanis,whichisthetimeweightedreturn.Sinceonlyoneassetwasinvolved,alsogivesthetimeweightedreturn.Tocalculatethemoneyweightedreturn,usethecashflowfunctionwithCf0=?2,000,Cf1=?5,000,andCf2=54,000×2 =10 8,000,andcomputeIRR,whichis7.73%.Themoneyweightedreturnislowerbecausetheamountintheaccountwasgreaterinthesecondperiod,whenthereturnwaspoor.Question28#44858Youranswer:Dwascorrect!Thebinomialdistributionisadiscretedistribution,whilethenormaldistributionisanexampleofacontinuousdistribution.Univariateandmultivariatedistributionscanbediscreteorcontinuous.Question29#44859杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question10#44832Youranswer:Bwascorrect!AccordingtoStandardIV(B)AdditionalCompensationArrangements,membersandcandidatesmustobtainwrittenpermissionfromtheiremployerbeforeacceptinganofferofcompensation(fortheperformanceofworkdonefortheiremployer)inadditiontowhattheyreceivefromtheiremployerandthatiscontingentonfutureperformance.Suchcontingentadditionalcompensationisjudgedtobereasonablyexpectedtoimpairtheemployee抯independenceandobjectivity.Question 11 #44833Youranswer:Awasincorrect.ThecorrectanswerwasD)CompliancerequiresthatthefirmfollowlocallawanddisclosetheconflictbetweenlocallawandGIPS.Question12#44834Youranswer:Awascorrect!StandardIII(D)PerformancePresentationrequiresthatstatementsaboutperformancebenotonlyaccurate,butalsofairandcomplete.WhileVance抯statementmaybeaccurateinatechnicalsense,itisneitherfairnorcomplete,anditseemsintendedtomisleadprospectsaboutVance抯trackrecordinmanagingequitiesaccountsand/orselectingequitysecurities.WhilecompliancewithGIPSanditsmethodsofcompositeconstructionarerecommended,theyarenotrequiredbytheStandard.Question13#44835Youranswer:Dwascorrect!StandardV(B)CommunicationwithClientsandProspectiveClients.Briefcommunicationsmustbesupportedbybackgroundreportsordatathatcanbemadeavailabletotheclientifrequested.Drakeshouldhavegiventheclientamoredetailedanalysisoftheinvestmentwhentheclientcalledtorequestsuchinformation.DrakedidnotviolateStandardIII(C)becausehe搕horoughly?readandevaluatedtheanalysisanddeterminedthatthestructuredproductwasinlinewithhisclient抯objectivesbeforerecommendingtheproducttohisclient.Question14#448 36 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！SchweserPrintableAnswers Book6 Exam1 AM TestID# :1 364 808Question1#447 86 Youranswer:Cwascorrect!StandardVI(C)ReferralFees.Membersandcandidatesshalldisclosetoclientsandprospectsanyconsiderationorbenefitreceivedbythememberordeliveredtoothersfortherecommendationofanyservicetotheclientorprospect.Thisallowstheclienttoevaluateanypartialityshowninmakingreferrals.Question2#44787Youranswer:Awascorrect!StandardIV(C)ResponsibilitiesofSupervisorsexplicitlystatesthatspeakingtotheemployeetodeterminetheextentoftheviolationsandreceivingassurancesthatitwillnotberepeatedisnotenough.Finleymusttakepositivestepstoinsurethattheviolationwillnotberepeatedincludingpromptlylaunchinganinvestigationandlimitingtheemployee抯activitiesand/orincreasingsupervisionoftheemployeduntiltheresultsoftheinvestigationareknown.Question3#44788Youranswer:Awascorrect!SteinviolatedStandardI(C)Misrepresentationbypresentingmaterialdevelopedbyanotherwithoutacknowledgement.Question4#44789Youranswer:Dwascorrect!StandardV(A)DiligenceandReasonableBasis.Therecommendationreflectstheconsensusofthegroupandnotnecessarilytheopinionofthememberorcandidate.Iftheconsensusopinionhasareasonablebasis,thememberdoesnothavetodissociatefromthereportbutshoulddocumentthedifferenceofopinion.Question5#44825杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!Thisisanout of themoneycoveredcall.Thestockcangoup$2tothestrikeprice,andthenthewriterwillget$3forthepremium.Thus,themaximumprofitis$5.Question 114 #44953Youranswer:Dwasincorrect.ThecorrectanswerwasB)Bothstatementsareincorrect.Asyieldsrise,thevalueoftheembeddedputoptioninaputablebondincreasesand(beyondacriticalpoint)reducesthedeclineinthevalueofthebondcomparedtoasimilaroptionfreebond.Asyieldsfall,thevalueoftheembeddedputoptiondecreases,and(beyondacriticalpoint)theputablebondbehavesmuchthesameasasimilaroptionfreebondsincetheembeddedputoptionhaslittleornovalue.Question 115 #44954Youranswer:Bwasincorrect.ThecorrectanswerwasD)Theincomeapproachusesnetoperatingincomebeforefinancingandtaxes.Hedonicpriceestimationusessimilarpropertiestodeterminetheappropriateregressioncoefficients.Question1 16 #44955Youranswer:Dwascorrect!aftertaxcashflow=(revenue?cost?depreciation) (1? t)+depreciation(revenue?cost) (1? t)+depreciation(t)[$250,000?(0.04×$250,000)? $15 ,000?( $1, 000,000×0.0 26) ] (1? 0.35)+ (1, 000,000×0.0 26) [($250,000? $10 ,000? $15 ,000?$ 26, 000)(0 .65 )]+$ 26, 000= $15 5,350Question 117 #449 56 Youranswer:Bwascorrect!Historicalriskandreturndataisgenerallylimitedandnotveryeasytoobtain.Question 118 #44957杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Studieshavedemonstratedthatapproximately90%ofaportfolio抯returnscanbeexplainedbyitstargetassetallocations.Itisverydifficulttogenerateabnormalportfolioreturnsbymarkettimingandsecurityselectionwithinassetclasses.Question85#44923Youranswer:Awascorrect!Marketweightedindex:Day1:whichisscaledtoavalueof500.Day2:whichnowhastobeadjustedrelativetotheinitialbasevalueof500fromday1.Weget:Finally,thepercentagechangeisQuestion 86 #44924Youranswer:Awascorrect!AportfoliowithequalnumbersofsharesofeachstockintheDJIAwillmatchtheperformanceoftheindexassumingtherearenostocksplits,stockdividends,orchangesinthemakeupoftheindex.Thereturnontheindexdoesnotincludedividendpayments.Sincethereinvesteddividendswilladdtothenumberofsharesofthosestocksthatpaydividends,Gomez抯portfolioreturnwillexceedthatoftheDJIA.Question87#44925Youranswer:Cwascorrect!Thetopdown,threestepprocessgoesfromtheeconomytotheindustrytothefirm,inthatorder.Question88#449 26 ... 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question79#449 16 Youranswer:Dwasincorrect.ThecorrectanswerwasC)Theintroductionofazerobeta(nosystematicrisk)portfoliowithareturnthatishigherthantheriskfreeratecanresultinastraightCMLevenwiththeassumptionthatborrowingandlendingratesaredifferent.Marginaccountsrepresentborrowing,sounlessthemarginlendingrateisthesameastheriskfreerate,thisdoesnotsolvetheproblem(akinkedCML)thatresultsfromunequalborrowingandlendingratesinthemodel.Question80#44 917 Youranswer:Dwascorrect!TheStandardsofPracticehaveverylittletodowithinvestmentconstraints.Question 81 #44 918 Youranswer:Awascorrect!Ariskaverseinvestorpreferslessrisktomorerisk.Thelowerthecorrelation,thegreatertheriskreduction.Thus,ariskaverseinvestorwouldmostprefertheportfoliowiththelowestcorrelationcoefficientandleastprefertheonewiththehighest.Ofthechoicesgiven,AandC抯correlationcoefficientof+0.6isthehighest.Question82#44 919 Youranswer:Bwascorrect!TheCAPMconcludesthatexpectedreturnsareapositive(linear)functionofsystematicrisk.Question83#44920Youranswer:Cwascorrect!TheSMLandCMLarebothlines,andbothintersecttheverticalaxisattheriskfreerate.TheSMLdescribestherisk/returntradeoffforindividualsecuritiesorportfolios,whereastheCMLdescribestherisk/returntradeoffofvariouscombinationsofthemarketportfolioandarisklessasset.Question84#44922杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question70#44907Youranswer:Bwascorrect!$2/50+0.08 =12 .0%Question 71 #44908Youranswer:Bwascorrect!Question72#44909Youranswer:Bwascorrect!Businessriskisthecombinationofsalesrisk,whichisthevariabilityofafirm'ssales,andoperatingrisk,whichistheadditionalvariabilityinoperatingearnings(EBIT)causedbyfixedoperatingcosts.Leverageisthecombinationofbusinessriskandfinancialrisk,whichistheadditionalriskcommonshareholdersmustbearwhenafirmusesfixedcostsourcesoffinancing.Question73#44 910 Youranswer:Dwascorrect!Sinceequityis40%ofassets,theequitymultiplieris1/0.40=2.5.UsingthetraditionalDuPontformula,ROE=8.7%×2.4×2.5=52.2%.Question74#44 911 Youranswer:Dwascorrect!g= (1? payout)(ROE)= (1? 0.40)( 16 % )=9 .6% 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!About68%ofallobservationsfallwithin?standarddeviationofthemean.Thus,about68%ofthevaluesfallbetween5and25.Question30#44 860 Youranswer:Bwascorrect!Thecentrallimittheoremholdsforanydistributionaslongasthesamplesizeislarge(i.e.,n>30).Question 31 #44 8 61 Youranswer:Bwascorrect!Thepopulationvarianceisknown(inthiscase100),sothestandarderrorofthesamplemeanisQuestion32#44 863 Youranswer:Cwascorrect!Thettestisusedwhenthesamplesizeissmall.Question33#44 864 Youranswer:Dwascorrect!Itwoulddecrease,notincrease,theprofitabilityofcorporateinvestmentprojects.Question34#44 865 Youranswer:Awascorrect!Thepotentialdepositexpansionmultiplieristhereciprocalofthereserveratio.Ifthereserveratiois20%,then1/0.20=5.Question35#44 866 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question75#44 912 Youranswer:Awascorrect!Straightlinedepreciation: $14 million/7=$2.0millionAccelerateddepreciation: $14 million×0.333=$4 .66 2millionQuestion 76 #44 913 Youranswer:Awascorrect!Sunkcostsarenottobeincludedininvestmentanalysis.Opportunitycosts,changesinnetworkingcapital,andtheproject抯impactontaxesareallrelevantvariablesindeterminingprojectcashflowforacapitalinvestment.Question77#44 914 Youranswer:Bwascorrect!Forthe4yearperiod,theaveragenetincomeis:($42,000+$98,000+$ 56, 000+$ 56, 000)/4= $63 ,000.Theinitialbookvalueis$800,000,decliningby$200,000peryearuntilthefinalbookvalueis$0.Theaveragebookvalueforthisassetis:($800,000?$0)/2=$400,000.Theaverageaccountingrateofreturnis:AAR=averagenetincome/averagebookvalue= $63 ,000/$400,000=0 .15 75 =15 .75%.Question78#44 915 Youranswer:Cwascorrect!Regularlyreviewingperformance,independence,skills,andexperienceofexistingboardmembersisacharacteristicoftheRemunerations/CompensationCommittee,nottheAuditCommittee.AllotherchoicesarepositivecharacteristicsoftheAuditCommittee.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Firstyearinterestis10%×$2million=$200,000.Firstyearprincipalpayment=234, 919 200,000=$34, 919 .Firstyearaftertaxcashflowis[300,000200,000 60 ,00035,000] (1 0.35)34, 919 + 60 ,000=28,3 31. Remainingprincipalbalanceis2million34, 919 =1, 965 ,081sosecondyearinterestis 1 96, 508andprincipalportionofthepaymentis234, 919 1 96, 508=38, 411 Secondyearaftertaxcashflowis[300,000 1 96, 508 60 ,00035,000] (1 0.35)38, 411 + 60 ,000=27 ,10 9.Includingtheproceedsofthesalethetotalsecondyearaftertaxcashflowis637 ,10 9.NPV==$52,2 91. 81 Question 111 #44950Youranswer:Dwascorrect!Thefourfirmconcentrationratioisthesumofthemarketsharesofthefourlargestfirmsintheindustry.45%+25% +15 % +10 %=95TheHerfindahlindexisthesumofthesquaresofthemarketsharesofeachofthefirmsintheindustry.0.452+0.252+0 .15 2+0 .10 2+0.052=0.30Question 112 #449 51 Youranswer:Bwascorrect!Thisstatementiscorrectinthatthecostofaputoptionisnegative.(Theinvestorhastopayfortheflexibilityoftheputoption.)Theotherstatementscouldnotbecorrect.The搒preadoverthespotratesforaTreasurysecuritysimilartoStahl抯bond?referstoZspreadonthebond.Foracallablebond,theOAS<Zspread,sothiscouldnotbeatruestatementbecause 13 5bp> ;11 0bp.TheoptioncostiscalculatedusingtheOASandtheZspread,notthenominalspread.Thestaticspread(orZspread)isthespreadovereachofthespotratesinagivenTreasurytermstructure,notthespreadovertheTreasury抯YTM.(Note:Weslippedinafixedincomequestionhereinthederivativessectionofthetest.CFAInstitutecandothisatanytime.Beonyourguardforthesetypesoftricks!)Question 113 #44952杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!Note:Question108#44947Youranswer:Dwascorrect!Aflattermstructurecouldbeexplainedaccordingtotheliquiditypreferencetheoryasacasewhereinvestorsexpectshorttermratestodeclineslightly,coupledwithamaturitypremiumthatexactlyoffsetsthedownwardpressurecontainedininvestorexpectations.Ahumpedtermstructurecouldbeexplainedaccordingtothepureexpectationstheoryifwebelievethatforshortermaturities,investorsbelieveinterestrateswillrisealongwiththebeliefthatmediumtermrateswilldeclinealongwiththebeliefthatlongertermrateswillbestable.Thepureexpectationstheorymakesnospecificmentionofthefactthatanupwardslopingtermstructureisaconsequenceofinvestorsexpectingshorttermratestoremainunchangedforaperiodoftimefollowedbyinvestorsexpectingshorttermratestoriseforaperiodoftime.Allthistheorysaysisthatanupwardslopingtermstructurecanbeexplainedbyinvestorsbelievingthatfutureshorttermrateswillrise.Finally,theliquiditypreferencetheoryattemptstoexplainthetermstructureaccordingtotwofactors.Theseareexpectationsaboutfutureinterestratesandamaturitypremiumtocompensateforinterestraterisk.Ifthetermstructureisdeclining,thiscouldbeexplainedsimplybyinvestorexpectationsofdecliningfutureshorttermratescoupledwithamaturitypremiumthatisnotlargeenoughtooffsetthedownwardpressureoninterestratesduetoinvestorexpectations.Question109#44948Youranswer:Awascorrect!Thevariabilityofpricesingeneralissignificantlylargerthanisthevariabilityof(uncertaintyabout)dividendsandhencemanagingpriceriskisofprimaryimportance,whiletheuncertaintyofdividendsisofsecondaryimportance.Theremainingstatementsarecorrect.Question 110 #44949Youranswer:Cwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Gainsorlossesfrommarketingmarketablesecuritiestotheirmarketvalueswillreverseiftheyaresoldandarethustemporarydifferences.Theotherstatementsarecorrect.Question 66 #44903Youranswer:Awascorrect!Whenanalyzingthefirm'sincometaxdisclosures,watchforthesewarningsignals: 1) Companiesthatgeneratesignificantpretaxincomeontheirfinancialstatementswhilereportinglowtaxespayable(i.e.,loweffectivetaxrates)arelikelytobeemployingaggressiveaccountingmethodsandhavelowqualityearnings.SoStatement1iscorrect.2)Restructuringchargestypicallyhavenotaxcashfloweffectsintheyeartheyarerecordedbutmayhavesignificanteffectsinfutureyearsastherestructuredoperationsandimpairedassetsaresold.SoStatement2iscorrectandChoiceAisthecorrectanswer.Ananalystmayalsolookoutforthefollowingadditionalitems:3)Adecreaseincapitalspendingmaysignalareversalofpasttemporarydifferencesrelatedtodepreciationmethods,resultinginhighertaxespayable.4)Temporarydifferencesmayreversebecauseofchangesintaxlaw,causinghighertaxespayable.Question67#44904Youranswer:Cwascorrect!Atakeorpayagreementobligatesabuyertopaythesellerofaproductorserviceaminimumamount,regardlessofwhethertheproductorserviceisdelivered.Thisistreatedasaliability,andthediscountedvaluemustbereflectedonthebuyer抯balancesheet.Question68#44905Youranswer:Cwascorrect!Cisreversed.Grossprofitisrecognizedattheinceptionforthesalestypelease.Question69#449 06 Youranswer:Bwascorrect!N=20;FV =10 00;PV=?94;PMT =60 ;CPT→I/Y=7%kd=(7%) (1? 0.4)=4.2%杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thecurrentaccountmeasurestheexchangeofmerchandisegoods,theexchangeofservices,theexchangeofinvestmentincome,andunilateraltransfers(giftstoandfromothernations).Question44#44878Youranswer:Bwascorrect!Ataminimumwageabovetheequilibriumwage,therewillbeanexcesssupplyofworkers.Firmssubstituteotherproductiveresourcesforlaborandusemorethantheeconomicallyefficientamountofcapital.Theresultisincreasedunemploymentandadecreaseineconomicefficiency.Firmsmaydecreasethequalityorquantityofthenonmonetarybenefitstheypreviouslyofferedtoworkers.Question45#44880Youranswer:Bwascorrect!Ifultimatepaymentisassuredandthecostestimatesareunreliable,thecompanymustusethecompletedcontractmethodandthuscannotrecognizeprofitsuntiltheendofthecontract.Profitsinyear2arezero.Theotherstatementsaretrue.Attheendofyear3,thebalanceinthecashaccountwillbeequaltothecumulativeprofits,or10?7.5=2.5.Underthepercentageofcompletionmethod,thecompanywouldrecognize$1millioninprofitsinyear2Thepercentageofcompletionmethodsmoothsincome,andtheprofitsrecognizedinyear3usingthismethodare(2.5/7.5)2.5=0.833.Question 46 #448 81 Youranswer:Dwascorrect!cashconversioncycle(CCC)=receivablesdays+inventoryprocessingdays?payablespaymentperiodSincethepayablespaymentperiodincreasesreceivablesby3.32daysandreceivablesdaysincreasesby5,CCCincreasesby1 .68 days.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question103#449 41 Youranswer:Dwascorrect!DP/P=DeffectiveDiDP/P=7 .6( +0.0075)=0.057,or5.7%Question104#44942Youranswer:Dwascorrect!Thenominalyield(anothertermforthecouponyield)islessthantheyieldtomaturityforadiscountbond.Question105#44943Youranswer:Dwascorrect!Thekeytermhereiscouponbond.Whileaninvestorinafixedcouponbondcanusuallyeliminatepriceriskbyholdingabonduntilmaturity,thesameisnottrueforreinvestmentrisk.Thereceiptofperiodiccouponpaymentsexposestheinvestortoreinvestmentrisk.Anoncallablebondreducesreinvestmentriskbyreducingtheriskofrepayment.Thus,aninvestormostconcernedwithreinvestmentriskwouldpreferanoncallablebondtoacallablebond.Sincelowercouponbondshavelowerreinvestmentrisk,thissameinvestorwouldpreferalowercouponbondtoahighercouponbond.Aninvestorconcernedaboutreinvestmentriskismostconcernedaboutadecreasinginterestrateenvironment.Wheninterestratesdecrease,theinvestorisforcedtoreinvestcouponsandothercashflowsatalowerrate.Withalowercoupon,thisriskisless.Question1 06 #44945Youranswer:Cwascorrect!AspecialpurposevehicleisalegalentitytowhichtheassetsusedascollateralinanABSissuearesold.Thistransactionseparatesthecompanyprovidingthecollateralfromthecompanythatneedsthefinancing.Theassetstransferredtothespecialpurposevehiclearefinancialassets,notfixedassets.Question107#449 46 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question47#44883Youranswer:Bwascorrect!Becausenetincomeisgiven,thisprobleminvolvesusingtheindirectmethod.Theinterestexpenseisignoredbecauseitisalreadydeductedbeforenetincomeiscalculated.Ignoresalesforthesamereason;netincomeincorporatessales.Question48#44884Youranswer:Awascorrect!Investingcashflowsincludebuyingandsellingequipmentandland.Thisproblemdoesnotinvolveanysuchcashflows.Question49#44885Youranswer:Bwascorrect!Totalcashflowisthedifferencebetweentheendingcashbalanceandthebeginningcashbalance.InQuestions47and48,wecalculatedcashflowfromoperationsof $12 andcashflowfrominvestingof$0,soweneedtocalculatecashflowfromfinancing:Totalcashflowisthus $10 2.Iftheendingcashbalanceis$200,thebeginningcashbalancewas$200? $10 2=$98.Question50#448 86 Netincome+ $10 0Noncashitems:depreciation+2Changeinaccountsreceivable?0Changeininventory?0Changeinaccountspayable?0CFO $12 Saleofcommonstock $10 0Repaymentofdebt?0Financingcashflows$90杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!StandardVI(B)PriorityofTransactions.Clienttransactionsmusttakeprecedenceovermembers?orcandidates?trades.Heshouldhavesubmittedhispersonaltradeorderonlyaftertradingforhisclient.StandardIII(B)FairDealingrequiresthatFarleydealfairlywithallclientswhenrecommendingsecuritiesortakinginvestmentaction.SincetheendowmentfundisFarley抯onlyaccount,hehasnotdisadvantagedanyotherclientbyonlytakingactiononthebehalfoftheendowment.Question15#44837Youranswer:Dwascorrect!StandardIII(A)Loyalty,Prudence,andCare.Membersandcandidatesmustcomplywiththeirfiduciarydutytothosepersonsandinterestsbywhomthedutyisowed.Specifically,membersmustalwaysactforthebenefitoftheirclientsandplaceclients?interestsbeforetheirown.Murphy抯actionsindirectingtradestoCasanovaviolatethefiduciarydutyowedtoWellington&Worrel抯clients,asheappearstobeselectingCasanovaforthediscountsreceivedonpersonalsecuritiestransactions.Casanovachargeshighercommissionratesanddeliverspoorerexecutionthanotherbrokersusedbythefirm.ByusingCasanova,Murphyviolateshisfiduciarydutybyfailingtoactintheclients?bestinterest.Alternatively,thearrangementwithCedrockappearstocomplywithMurphy抯fiduciaryduty,asthefirmreceivesinvestmentresearchusedinmanagingclientportfolios(asoftdollararrangement)andachievesbetterexecutionforclienttrades.BecausethetradingarrangementwithCedrockbenefitsclients,itdoesnotviolateStandardIII(A).Question 16 #44838Youranswer:Bwasincorrect.ThecorrectanswerwasC)DoddhasmostlikelyviolatedStandardIII(B)FairDealingbygivingPhillipsanovergenerousallocationoftheoversubscribed(揾ot?newissue.Theissueisnotthatheisofferingcompensationtoaclienttoresolveadispute,butthatbyoverallocatingtheIPOsharestoPhillipsheisnottreatinghisotherclientsfairly.StandardIII(B)FairDealingrequiresthatcandidatesandmembersnotusesharesof揾otissues?asanincentivetoachievearewardorbenefit.Thebenefitinthiscaseisthatthedisputewill揼oaway.?/SPAN>Question17#44839Youranswer:Dwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Ifthedebtratio(TD/TA)isequalto40%andthefirmhasnopreferredstock,thepercentageofequityis1?0.40,or60%.Question54#44890Youranswer:Bwascorrect!Sharesissuedpostsplitneednotbeadjustedforthesplitastheyare搉ew?shares.Question55#44892Youranswer:Awascorrect!BecausebasicEPSdoesnotadjustforwarrants,theadjustmentis0.DilutedEPSusesaverageprice.SinceAP>EX,Question 56 #44893Youranswer:Dwascorrect!Aisnotnecessarilytrue.Byitself,alowreceivablesturnoverreferstotheaveragetimeittakesthecompanytocollectitsreceivables,nottothelevelofreceivables(whichwillaffect,butnotdictateitscurrentratio).Bisnotnecessarilytrue;whetherafirm抯ROAishigherthanitsROEdependsontherelationofthecostofdebttoitsROA.Cisincorrect.Justthefactthatacompanyhasahighgrossprofitmargindoesnotnecessarilymeanitwillhaveahighnetprofitmargin.Forexample,thecompanycouldhaveveryhighoperatingexpensesandendupwithalownetprofitmargin.Thecashconversioncycleis:( 365 /6) +( 365 /9)?( 365 /12 ) =60 .8+40 .6? 30.4=71days.Question57#44894Youranswer:Cwascorrect!Inperiodsofrisingpricesandstableorincreasinginventoryquantities,FIFO,comparedtoLIFO,resultsinhigherworkingcapital.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thefourfirmconcentrationratiois35% +10 %+20%+30%=95%.TheequivalentnumberoffirmsisthereciprocaloftheHerfindahlindex.Sincethesefivefirmscomprise100%ofthemarket,theHerfindahlindexissotheequivalentnumberoffirmsisQuestion89#44927Youranswer:Awascorrect!Optionfreebondshavepositiveconvexityandtheeffectof(positive)convexityistoincreasethemagnitudeofthepriceincreasewhenyieldsfallandtodecreasethemagnitudeofthepricedecreasewhenyieldsrise.Question90#44928Youranswer:Awascorrect!Duringtherecoveryphaseofthebusinesscycle,cyclicals,commodities,andcommoditylinkedequitiesaregenerallyattractiveinvestments.Question 91 #44929Youranswer:Dwascorrect!IncreasesinkreduceP/E.IncreasesingorthedividendpayoutratioincreaseP/E.Question92#44930Youranswer:Dwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Underlyingearningsshouldbeusedinthecalculation.Thesearetransitory,nonrecurringcomponentsofearningsthatarespecifictothecompany.Also,themostrecentearningsinformationshouldbeusedinthecalculation.Thereforeweget:Question93#449 31 Youranswer:Awascorrect!Theriskpremiumwillbeafunctionofbusinessrisk,financialrisk,liquidityrisk,exchangeraterisk,andcountry(politicalrisk).Stocksdonotinvolvedefaultrisk.Question94#44932Youranswer:Bwascorrect!SemiannualcompoundrateisEndingvaluemustbe$888.94 (1. 0325) 14 = $1, 3 91. 02.Question95#44933Youranswer:Bwascorrect!Thisisasupernormalgrowthstockvaluationproblem.Step1:Findthedividendsinthesupernormalgrowthperiod.D 1 =1. 00 (1. 20)= $1. 20;D2 =1. 2 (1. 2)= $1. 44;D3 =1. 44 (1. 15)= $1 .65 6Step2:Usetheconstantgrowthmodeltofindthepriceattheendofperiod3. $1, 3 91. 02?u> ;1, 000.00facevalueatmaturity3 91. 02?u> 315 .00totalcoupons (14 ×22.50) 76. 02杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Step3:Discountallofthecashflowsbacktotimezero.Question 96 #44934Youranswer:Cwascorrect!Usethesamedividendsand搉ormal?growthpricefromQuestion 96, excepttheperiod1dividend( $1. 20)hasalreadybeenpaid,andwediscounttheremainingtwodividendsandtheend of yearprice(P3)backtotheendofperiod1togetP 1 .Step1:Findthedividendsinthesupernormalgrowthperiod.D2 =1. 2 (1. 2) =1. 44;D3 =1. 44 (1. 15)= $1 .65 6Step2:Usetheconstantgrowthmodeltofindthepriceattheendofperiod3.Step3:Discountallofthecashflowsbacktotimeone.Question97#44935Youranswer:Dwascorrect!TheOASisameasureoftheyieldspreadoverTreasuryspotrateswithouttheoption.Question98#449 36 Youranswer:Cwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Note:Donotaddbackdepreciationwhenusingthedirectmethod.Dividendsareafinancingcashflow.Question 51 #44887Youranswer:Dwascorrect!freecashflow(FCF)=cashflowfromoperations?netcapitalexpendituresFCF=$800?40(purchaseofplantandequipment)+30(saleofland)=$790Question52#44888Youranswer:Cwascorrect!Asimplenumericalexamplecanhelp.AssumeCA=2andCL =1. ThennoteandDebtisdecreased,butequityisunchanged,soD/Eisdecreased.Question53#44889Youranswer:Cwascorrect!Sales牋+$4,000牋Cashreceivedfromcustomers牋牋+$4,000(sincenochangeinAR)Costofgoodssold牋?,000?/td>Increaseininventory牋?00?/td>Increaseinaccountspayable牋+300?/td>Othercashinputexpenses牋?00?/td>Cashpaidforinputs牋牋牋?,300Cashpaidfortaxes牋牋牋?00Cashflowfromoperations牋?/td> ?1, 500杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！TheeightmajorsectionsoftheCFAInstituteGlobalInvestmentPerformanceStandardsareFundamentalsofCompliance,InputData,CalculationMethodology,CompositeConstruction,Disclosures,PresentationandReporting,RealEstate,andPrivateEquity.Question18#44840Youranswer:Bwascorrect!StandardIII(C)Suitabilityrequiresthattheclientportfoliofittheclientriskandreturnobjectivesasstatedintheinvestmentpolicystatement,andthatseemstobethecasehere.Theproperfocusofriskanalysisisontheentireportfolioandneednotbeappliedonanissuebyissuebasis.ThereappearstobenoviolationofV(A)DiligenceandReasonableBasissincehispreviousanalysisindicatedtheportfoliowassuitableandhisrecordssupportedthatconclusion.Question19#448 41 Youranswer:Bwascorrect!Withnointerestpaidontheoriginal$5,000loan,at6%infiveyearstheloanbalancewillbe:Newloanbalance=$5,000 (1. 06) 5= $6, 6 91. 13orPV=5,000;I/Y =6 N=5;PMT=0;CPT→FV= ?6, 6 91. 13. $6, 6 91. 13istheloanthathastoberetiredoverthenextfiveyears.Thefinancialcalculatorsolutionis:PV =6, 6 91. 13;I/Y =6 N=5;CPT→PMT.YouobtainPMT=?,588.45.Question20#44844Youranswer:Cwascorrect!N=4;PV=?,000;FV =6, 520;CPT→I/Y =12 .99%,orQuestion 21 #44845Youranswer:Cwascorrect!AandBdescribeahistogram,andDdescribesafrequencypolygon.Question22#448 46 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Awascorrect!holdingperiodreturn(HPR)=Question23#44847Youranswer:Cwascorrect!range=maximumvalue?minimumvalue=55 ?15 =40Calculatethemean:Togetthemeanabsolutedeviation,sumthedeviationsaroundthemean(ignoringthesign),anddividebythenumberofobservationsNotethattheunitsofvarianceherearepercentsquared.Usingdecimalsratherthanwholepercentyields0.0250.Question24#44848Youranswer:Bwascorrect!Question25#44849杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question58#44895Youranswer:Awascorrect!Question59#448 96 Youranswer:Awascorrect!Question60#44897Youranswer:Dwascorrect!FIFOendinginventory=FIFOINV=LIFOINV+LIFOreserve=22,000+4,000=$ 26, 000Question 61 #44898Youranswer:Bwascorrect!Thetotalcashflowsareequal,buttheexpensingfirmwillseelowerearlyyearprofitabilityratherthanhigherearlyyearprofitability.Question62#44899Youranswer:Cwascorrect!Impairmentmustberecognizedwhenthereissufficientevidencetoindicatethatthevalueofanassetcarriedonthebooksofacompanycannotberecovered.Indicatorsoflackofrecoverabilityincludeasignificantdecreaseinmarketvalue,adversechangesinlegalorbusinessconditions,substantialcostoverruns,andasignificantdeclineinanasset抯longtermlikelihoodofgeneratingprofit. 10 0@$ 210 =$ 21, 00070@$225= $15 ,750$ 36, 750Purchases 19 0Sales 17 0Balance20@$ 210 =$4,200FIFOaftertaxprofit=LIFOaftertaxprofit+(changeinLIFOreserve) (1? t)=$2,000+($4,000?$3,000) (1? 0.4)=$2,000+ $60 0=$2 ,60 0杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Forthepositivelyskeweddistribution,themodeislessthanthemedian,whichislessthanthemean.Question 26 #44850Youranswer:Bwasincorrect.ThecorrectanswerwasA)ThenominalincreaseinindustrialproductionisexpectedtobeThustherealchangeisexpectedtobeGiventheregressionequation,ourforecastis9,397.54=8,950+395 (1. 133).Question27#448 51 Youranswer:Awascorrect!ThefirstyearaccountreturnwasThesecondyearreturnwasThegeometricmeanis,whichisthetimeweightedreturn.Sinceonlyoneassetwasinvolved,alsogivesthetimeweightedreturn.Tocalculatethemoneyweightedreturn,usethecashflowfunctionwithCf0=?2,000,Cf1=?5,000,andCf2=54,000×2 =10 8,000,andcomputeIRR,whichis7.73%.Themoneyweightedreturnislowerbecausetheamountintheaccountwasgreaterinthesecondperiod,whenthereturnwaspoor.Question28#44858Youranswer:Dwascorrect!Thebinomialdistributionisadiscretedistribution,whilethenormaldistributionisanexampleofacontinuousdistribution.Univariateandmultivariatedistributionscanbediscreteorcontinuous.Question29#44859杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question10#44832Youranswer:Bwascorrect!AccordingtoStandardIV(B)AdditionalCompensationArrangements,membersandcandidatesmustobtainwrittenpermissionfromtheiremployerbeforeacceptinganofferofcompensation(fortheperformanceofworkdonefortheiremployer)inadditiontowhattheyreceivefromtheiremployerandthatiscontingentonfutureperformance.Suchcontingentadditionalcompensationisjudgedtobereasonablyexpectedtoimpairtheemployee抯independenceandobjectivity.Question 11 #44833Youranswer:Awasincorrect.ThecorrectanswerwasD)CompliancerequiresthatthefirmfollowlocallawanddisclosetheconflictbetweenlocallawandGIPS.Question12#44834Youranswer:Awascorrect!StandardIII(D)PerformancePresentationrequiresthatstatementsaboutperformancebenotonlyaccurate,butalsofairandcomplete.WhileVance抯statementmaybeaccurateinatechnicalsense,itisneitherfairnorcomplete,anditseemsintendedtomisleadprospectsaboutVance抯trackrecordinmanagingequitiesaccountsand/orselectingequitysecurities.WhilecompliancewithGIPSanditsmethodsofcompositeconstructionarerecommended,theyarenotrequiredbytheStandard.Question13#44835Youranswer:Dwascorrect!StandardV(B)CommunicationwithClientsandProspectiveClients.Briefcommunicationsmustbesupportedbybackgroundreportsordatathatcanbemadeavailabletotheclientifrequested.Drakeshouldhavegiventheclientamoredetailedanalysisoftheinvestmentwhentheclientcalledtorequestsuchinformation.DrakedidnotviolateStandardIII(C)becausehe搕horoughly?readandevaluatedtheanalysisanddeterminedthatthestructuredproductwasinlinewithhisclient抯objectivesbeforerecommendingtheproducttohisclient.Question14#448 36 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！SchweserPrintableAnswers Book6 Exam1 AM TestID# :1 364 808Question1#447 86 Youranswer:Cwascorrect!StandardVI(C)ReferralFees.Membersandcandidatesshalldisclosetoclientsandprospectsanyconsiderationorbenefitreceivedbythememberordeliveredtoothersfortherecommendationofanyservicetotheclientorprospect.Thisallowstheclienttoevaluateanypartialityshowninmakingreferrals.Question2#44787Youranswer:Awascorrect!StandardIV(C)ResponsibilitiesofSupervisorsexplicitlystatesthatspeakingtotheemployeetodeterminetheextentoftheviolationsandreceivingassurancesthatitwillnotberepeatedisnotenough.Finleymusttakepositivestepstoinsurethattheviolationwillnotberepeatedincludingpromptlylaunchinganinvestigationandlimitingtheemployee抯activitiesand/orincreasingsupervisionoftheemployeduntiltheresultsoftheinvestigationareknown.Question3#44788Youranswer:Awascorrect!SteinviolatedStandardI(C)Misrepresentationbypresentingmaterialdevelopedbyanotherwithoutacknowledgement.Question4#44789Youranswer:Dwascorrect!StandardV(A)DiligenceandReasonableBasis.Therecommendationreflectstheconsensusofthegroupandnotnecessarilytheopinionofthememberorcandidate.Iftheconsensusopinionhasareasonablebasis,thememberdoesnothavetodissociatefromthereportbutshoulddocumentthedifferenceofopinion.Question5#44825杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Cwascorrect!Thisisanout of themoneycoveredcall.Thestockcangoup$2tothestrikeprice,andthenthewriterwillget$3forthepremium.Thus,themaximumprofitis$5.Question 114 #44953Youranswer:Dwasincorrect.ThecorrectanswerwasB)Bothstatementsareincorrect.Asyieldsrise,thevalueoftheembeddedputoptioninaputablebondincreasesand(beyondacriticalpoint)reducesthedeclineinthevalueofthebondcomparedtoasimilaroptionfreebond.Asyieldsfall,thevalueoftheembeddedputoptiondecreases,and(beyondacriticalpoint)theputablebondbehavesmuchthesameasasimilaroptionfreebondsincetheembeddedputoptionhaslittleornovalue.Question 115 #44954Youranswer:Bwasincorrect.ThecorrectanswerwasD)Theincomeapproachusesnetoperatingincomebeforefinancingandtaxes.Hedonicpriceestimationusessimilarpropertiestodeterminetheappropriateregressioncoefficients.Question1 16 #44955Youranswer:Dwascorrect!aftertaxcashflow=(revenue?cost?depreciation) (1? t)+depreciation(revenue?cost) (1? t)+depreciation(t)[$250,000?(0.04×$250,000)? $15 ,000?( $1, 000,000×0.0 26) ] (1? 0.35)+ (1, 000,000×0.0 26) [($250,000? $10 ,000? $15 ,000?$ 26, 000)(0 .65 )]+$ 26, 000= $15 5,350Question 117 #449 56 Youranswer:Bwascorrect!Historicalriskandreturndataisgenerallylimitedandnotveryeasytoobtain.Question 118 #44957杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Studieshavedemonstratedthatapproximately90%ofaportfolio抯returnscanbeexplainedbyitstargetassetallocations.Itisverydifficulttogenerateabnormalportfolioreturnsbymarkettimingandsecurityselectionwithinassetclasses.Question85#44923Youranswer:Awascorrect!Marketweightedindex:Day1:whichisscaledtoavalueof500.Day2:whichnowhastobeadjustedrelativetotheinitialbasevalueof500fromday1.Weget:Finally,thepercentagechangeisQuestion 86 #44924Youranswer:Awascorrect!AportfoliowithequalnumbersofsharesofeachstockintheDJIAwillmatchtheperformanceoftheindexassumingtherearenostocksplits,stockdividends,orchangesinthemakeupoftheindex.Thereturnontheindexdoesnotincludedividendpayments.Sincethereinvesteddividendswilladdtothenumberofsharesofthosestocksthatpaydividends,Gomez抯portfolioreturnwillexceedthatoftheDJIA.Question87#44925Youranswer:Cwascorrect!Thetopdown,threestepprocessgoesfromtheeconomytotheindustrytothefirm,inthatorder.Question88#449 26 ...
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2007 schweser answers explanations of book 6 exam 2 pm
... 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question35#452 46 Youranswer:Bwascorrect!whereristhenominalriskfreerate.Hence,ThenominalrateintheU.S.is5%=2+3.TheresultisthatUsing (1. 02) (1. 03) ?1= 0.0506fortheU.S.nominalrateproducesaresultof4 .12 %.Question 36 #45247Youranswer:Cwascorrect!OpenmarketoperationsaretheU.S.FederalReserve抯mostoftenusedtoolforchangingthemoneysupply.Question37#45248Youranswer:Dwascorrect!Thedemandforlaborisaderiveddemand.Whenthedemandforthefinalgoodorserviceincreases,thepriceofthatfinalgoodorserviceincreases.Thatincreaseinpricewillleadtothefirmemployingmoreoftheresourcesusedinproductionateachresourceprice,includinglabor.Question38#45249Youranswer:Awascorrect!Intheshortrun,anincreaseinthemoneysupplywillincreaseaggregatedemand.Thenewshortrunequilibriumwillbeatahigherpricelevelandagreaterlevelofrealoutput(GDP).Question39#45250Youranswer:Bwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Tofindthecovariance,wemusttakethecrossproductsofthedifferences.Question85#45297Youranswer:Dwascorrect!Astopbuyorderisaconditionalmarketorderbywhichaninvestordirectsthepurchaseofastockifitrisestoacertainprice.Stopbuysareplacedabovethecurrentmarketprice.Limitorderscanhavemarketpriceasthelimit,usedwhenlackofliquidityisaconcern.Question 86 #45298Youranswer:Dwascorrect!Theshortsellerhopesthatthecurrentpriceistoohighandhopesthatitwillfallinthefuture.However,notradingruleexiststhatrequirestheshortsellertosubsequentlyreplacetheborrowedstockatapricelowerthanthepriceatwhichheorshesoldthestock.Question87#45299Youranswer:Bwascorrect!ThepriceweightedindexonDecember 31, 2005equalsandonDecember 31, 2006equalsTheoneyearholdingperiodreturnisYearDif.Stock1Dif.Stock2CrossProduct99400007??5 01 ?1 5?5杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！homeowner.Ifthehomeownerprepays,theholderofthebondhasreinvestmentrisk.Embeddedoptionsinbondsareinseparablefromtheunderlyingbondandtradewiththatbond.Question1 06 #45327Youranswer:Bwascorrect!Thecleanpriceofthebondisthequotedprice,89 .14 %ofparvalue,whichis$8 91. 40.Question107#45328Youranswer:Dwascorrect!Resettinginterestratesmakesthebondless,notmore,susceptibletointerestratechanges.Question108#45329Youranswer:Dwascorrect!Whentheforeigncurrencyappreciates,eachforeigncurrencydenominatedcashflowbuysmoredomesticcurrencyunits梚ncreasingthedomesticcurrencyreturnfromtheinvestment.Theappreciationoftheforeignassetbenefitstheinvestoraswell.Question109#453 31 Youranswer:Dwascorrect!Forwardsaresubjecttodefaultrisk,butfuturesarenot.Forwardsareprivatecontracts,butfuturesareexchangetraded.Forwardsareindividualizedcontracts,butfuturesarestandardized.Question 110 #45332Youranswer:Cwascorrect!ChoiceAisincorrectbecausespeculatorsenterthefuturesmarketinpursuitofprofit,acceptingriskintheendeavor.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Notethatthepriceisalwaysoneyearbeforethedividenddate.SolveforthePVof $10 tobereceivedintwoyears.FV =10 ;N=2;I/Y =17 ;CPT→PV=$7. 31. Question 91 #45303Youranswer:Dwascorrect!Theforecastyearendprice,P,is:Question92#45304Youranswer:Dwascorrect!Thisindustryappearstobeintherapidacceleratinggrowthphase.Thisphaseischaracterizedbythedevelopmentofnewproductsandrapiddemandgrowth.Thereislimitedcompetition,andsalesgrowthandprofitmarginsarehighandaccelerating.Question93#45305Youranswer:Awascorrect!Supplyanddemandaregovernedbymanyfactors,bothrationalandirrational.Question94#45307Youranswer:Bwascorrect!Specifictradingrulesrequiremuchsubjectivejudgment.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question44#45255Youranswer:Bwascorrect!Anaturalmonopolymayexistwheneconomiesofscalearegreat.Thelargeeconomiesofscalemakeitinefficienttohavemanysmallproducers.Question45#452 56 Youranswer:Bwascorrect!Extraordinaryitemsareunusualandinfrequentitemsthatarereportedseparately,netoftax揵elowtheline.?Question 46 #45257Youranswer:Bwascorrect!Thisisthedirectmethod,whichstartsatthetopoftheincomestatementwithsalesandthenworkswiththeindividualcomponentsofnetincomedirectlyrelatedtocashflows.Question47#45258Netsales+ 1, 200Accountsreceivable(down)+25Cashcollectedfromcustomers+ 1, 225Costofgoodssold?nbsp; 65 0Inventory(up)?nbsp; 10 0Accountspayable(up)+50Cashpaymentsforinputs?nbsp;700Cashinterestpaid?nbsp;45Cashinterestreceived+20Cashflowfromoperations+$500杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！StandardIII(C)Suitability.Membersandcandidatesshouldcarefullyconsidertheneeds,circumstances,andobjectivesofclientsbeforetakinginvestmentaction.However,somemembersandcandidatesaremerelyexecutingspecificinstructionsforretailclients.Inthiscase,sinceWellsbelievesthetradeisunsuitable,Wellsshouldconfirmthattheclientisawaretheactionisunsuitablebeforeexecutingthetradeorrefrainfrommakingthetrade.Question5#452 16 Youranswer:Awascorrect!StandardI(C)Misrepresentation.JameshasactedinappropriatelyinaskingJonestoplagiarizethereportandmayhaveviolatedseveralStandards,includingStandardIV(C)ResponsibilitiesofSupervisors.However,hehasnotviolatedtheprohibitionagainstplagiarisminStandardI(C).Jones,ontheotherhand,evenifactingontherequestofhersupervisor,willviolateStandardI(C)Misrepresentation.Makingminorchangestoareportdoesnotmakeityourown.Question6#45 217 Youranswer:Awascorrect!AccordingtoStandardII(B)MarketManipulation,membersandcandidatesshouldnotengageinanypracticethatwouldartificiallyinflatetradingvolumeordistortprices.However,thisStandarddoesnotprohibittransactionsdonefortaxpurposes.Inthiscase,therewasnointenttomisleadmarketparticipantsastothestockpriceofSafetyAirlines,andthetradeswereundertakentotakeadvantageofalegitimatetaxstrategy.ThustherehasbeennoviolationofStandardII(B)oranyotherStandard.Question7#45 218 Youranswer:Dwascorrect!StandardI(B)IndependenceandObjectivityallowsinvestorpaidresearchbutrequiresthatmembersandcandidateslimitthetypeofcompensationtheyacceptforwritingaresearchreportsothatitisnotdependentontheconclusionsoftheresearchreport.Bestpracticeisforanalyststoonlyacceptaflatfeeforsuchcompanypaidresearchreports.Suchresearchshouldalsoincludecompletedisclosureofthenatureofthecompensationreceivedforwritingsuchareportsothatinvestorswillnotbemisledastotherelationshipbetweentheanalystandthecompany.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thecompanyboughtequipmentfor $12 0,whichwasacashoutflow.Question48#45259Youranswer:Cwascorrect!Question49#45 260 Youranswer:Cwascorrect!Whenusingthedirectmethodofcalculatingoperatingcashflows,depreciationandamortizationarenot揳ddedback?(tonetincome)becausewedon抰beginwithnetincomeunderthedirectmethod.Depreciationandamortizationarenoncashchangesandarenotusedunderthedirectmethod.Theotherstatementsaretrue.Interestpaymentsondebtaffectcashflowfromoperations.Whenusingtheindirectmethod,ananalystshouldaddanylossesonsalesoffixedassetstonetincomesincetheyarenotoperatingcashflows.Question50#45 2 61 Youranswer:Dwascorrect!Inaperiodofrisingprices,LIFOresultsinhigherCOGS,lowertaxes,lowernetincome,lowerinventorybalances,lowerworkingcapital,andhighercashflowsduetolesstaxespaidout.Inafallingpriceenvironment,itisthereverse.Also,FIFOinventoryleadstooppositeresultsforbothrisingandfallingprices.Question 51 #45 262 Youranswer:Awascorrect!Paiddividend?5Saleofstock+275Retireddebt?25Financingcashflow +12 5杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thecircumstancesofthebankruptcydidnotinvolvefraudulentordeceitfulbusinessconduct,sothereforethereisnoviolationofStandardI(D)Misconduct.Hart抯bankruptcydoesnotcompromisehisprofessionalreputationortheintegrityoftheCFAdesignation.Question13#45224Youranswer:Cwascorrect!UndertheCodeandStandards,Marshallhasanobligationtodisclosethatshereceivesspecialcompensationbasedontheamountofclienttradingvolume.StandardVI(A)DisclosureofConflictsrequiresmemberstodisclosetoclientsandprospectsallmattersthatcouldpotentiallyimpairthemember抯abilitytomakeinvestmentdecisionsthatare(andtogiveinvestmentadvicethatis)objectiveandunbiased.Question14#45225Youranswer:Bwascorrect!StandardVI(A)DisclosureofConflicts.Matlockmustdisclose (1) specialrelationships梔irectorshipsandconsultancies,(2)investmentbanking,(3)underwritingandfinancialrelationships,(4)brokerdealermarketmakingactivities,and(5)materialbeneficialownership.ThefactthatMatlock抯sonworksforKingCompanyisnotaconflictrequiringdisclosuretoclientsandprospectssincehissonisnotamanagerofthefirm,inwhichcaseitcouldbe.Question15#452 26 Youranswer:Dwascorrect!UnderStandardIII(E)PreservationofConfidentiality,membersandcandidatesshouldmaintaintheconfidentialityofinformationreceivedinthecourseoftheirprofessionalservicerelatingtobothcurrentandformerclients.Inthecaseofillegalactivity,however,Reillymayhavealegalobligationtoreporttheactivity.Ideally,heshouldconsultwithhisemployerfirstaboutwhatactionshemayberequiredtotake.Ofthechoicesgiven,seekingtheadviceofoutsidecounselastowhetherhehassuchanobligationunderlocallawandwhethertheactivityisindeedillegalistheonepermittedundertheStandard.Question 16 #45227Youranswer:Bwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thecumulativeabsolutefrequencyofthefourthintervalis80,whichisthesumoftheabsolutefrequenciesfromthefirsttothefourthintervals.Question 21 #45232Youranswer:Awascorrect!Inthissituation,thecoefficientofdetermination(R2)isthepercentageoftotalvariationinthedependentvariable(companysales)explainedbythevariationintheindependentvariable(industrysales).totalvariation(SST)=unexplainedvariation(SSE)+explainedvariation(SSR)So,thecoefficientofdeterminationcanbeexpressedas:AnR2 of0 .25indicatesthatthevariationinindustrychipsalesexplains25%ofvariationinsalesofTastyChips.Forasimpleregression(oneindependentvariable)thesquarerootoftheR2isthecorrelationbetweenthevariables,Question22#45233Youranswer:Awascorrect!Theaverageannualcompoundgrowthrateiscalculatedas:[ (1+ 0.25) (1? 0.25) (1+ 0.30) (1? 0.30)]0.25 ?1= 0. 9 61 1? 1=?.0389or?.89%.Aninitial $10 ,000investmentwouldbeworth10,000 (1. 25)(0.75) (1. 3)(0.7)=$8,5 31. Question23#45234Youranswer:Dwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！The95%confidenceintervalis10% ?1. 96( 4%)orfrom2. 16 % to17.84%.Question 31 #45242Youranswer:Awascorrect!Usingthestandardnormalprobabilitydistribution,,thechanceofgettingzeroorlessreturn(losingmoney)is1?0.9772=0.0228%or2.28%.Analternativeexplanation:theexpectedreturnis10%.Tolosemoneymeansthereturnmustfallbelowzero.Zeroisabouttwostandarddeviationstotheleftofthemean.50%ofthetime,areturnwillbebelowthemean,and2.5%oftheobservationsarebelowtwostandarddeviationsdown.About97.5%ofthetime,thereturnwillbeabovezero.Thus,onlyabouta2.5%chanceexistsofhavingavaluebelowzero.Question32#45243Youranswer:Cwascorrect!Accordingtothecentrallimittheorem,thesamplemeanforlargesamplesizeswillbedistributednormallyregardlessofthedistributionoftheunderlyingpopulation.Question33#45244Youranswer:Dwascorrect!Thecrowdingouteffectreferstoareductioninprivateborrowingandspendingasaresultofhigherinterestratesgeneratedbybudgetdeficitsthatarefinancedbyborrowingintheprivateloanablefundsmarket.Question34#45245Youranswer:Awascorrect!Aggregatehoursmeasuresthetotalnumberofhoursworkedinayearbyallemployedpeople.Aggregatehourstakesaccountofboththelevelofemploymentandtheaverageworkweek,makingitsuperiortoeitherofthosemeasuresasanindicatoroftotallaborperformed.Totallaborcompensationisameasureofrealwageratesthatincludeswages,salaries,andemployerpaidbenefits.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question88#45300Youranswer:Cwascorrect!Themarketvaluesoftheindexarecalculatedinthetablebelow.Question89#453 01 Youranswer:Awascorrect!Ifcapitalmarketsareweakformefficientandsemistrongformefficient,nopubliclyavailableinformationcanbeusedtoearnabnormal(riskadjusted)returns.Question90#45302Youranswer:Bwascorrect!Timeline=$0now;$0inyear1;$0inyear2;$1inyear3.December 31, 2005牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋 $10 牋5,000牋$50,000StockB牋$40牋 10 ,000牋$400,000StockC牋$50牋 12 ,000牋 $60 0,000Total牋牋牋 ?1, 050,000December 31, 20 06 牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋 $15 5,000牋$75,000StockB牋$30牋 10 ,000牋$300,000StockC牋$25牋 12 ,000牋$300,000Total牋牋牋牋 $67 5,000杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！COGSFIFO=27,000? (1, 400 ?1, 200)=$ 26, 800.Question62#45273Youranswer:Bwascorrect!Capitalizingcoststendstosmoothearningsandreducesinvestmentcashflows.Itwillalsoincreasecashflowsfromoperationsandincreaseprofitabilityintheearlyyears.Question63#45274Youranswer:Awascorrect!Question64#452 76 Youranswer:Awascorrect!Firstfindthecurrentratio:Next,usealgebratosolveforthelevelofcurrentassetsthatwouldsatisfyacurrentratioof2.4:X =1, 200,000 .1, 200,000 ?1, 000,000=200,000socurrentassetswouldneedtoincreaseby$200,000.Dothesamethingforcurrentliabilities:X=4 16 , 667 .Currentliabilitieswouldneedtodecreaseby500,000?4 16 , 667 =$83,333.Question65#45277Youranswer:Bwascorrect!PMT=800,000;FV =10 ,000,000;N=5;I/Y=8.25;CPT→PV=$9,900,837杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question58#45 269 Youranswer:Bwascorrect!OnlyStatementIIIisfalse.Inperiodsofdecliningprices,LIFOinventoryvalueswillbehigher,leadingtohigherassetandequityvaluesandlowerdebttoequityratios.FIFOinventoryvaluesarepreferredbecausetheybetterapproximatereplacementcost.FIFOCOGS=LIFOCOGS?changeinLIFOreserve.COGS=purchases+beginninginventory?endinginventory,sothereisanegativerelationbetweenCOGSandmisstatementsofendinginventory.Question59#45270Youranswer:Dwascorrect!Question60#452 71 Youranswer:Dwascorrect!Generally,LIFOcausesCOGStobelargeandnetincometobesmall,soswitchingtoFIFOshouldreversethis,forcingCOGSdownandincomeup.Sotheanswershouldbepositive.TheLIFOreservewentup90?85=+5,soswitchingtoFIFOwilldecreaseCOGSby5,000,whichwillincreasegrossprofitby5,000andnetincomeby(5,000) (1? 0.28)=+3 ,60 0.Question 61 #45272Youranswer:Bwascorrect!COGSFIFO=COGSLIFO?(endingLIFOreserve?beginningLIFOreserve)杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！ChoiceBisincorrectbecausehedgerstradefuturestoreducesomepreexistingriskexposure.ChoiceDisincorrectsincetheclearinghousetakesnoactivepositioninthemarket,butinterposesitselfbetweenallpartiestoeverytransaction.Thus,theclearinghouseguaranteesthattradersinthefuturemarketwillhonortheirobligations.Question 111 #45334Youranswer:Bwascorrect!Calloptionsrepresentanobligationtoperforminthecaseoftheseller.Theowneroftheoption(buy)hastheright,butnotanobligation,topurchaseanunderlyinggoodataspecifiedpriceforaspecifiedtimefromtheseller.Question 112 #45335Youranswer:Awascorrect!VT=ST+Max(0,X?ST)VT=$0.70+Max(0,0.75?0.70)=$0.75π=VT?V0?0.75?(S0+P0)=$0.75?(0 .67 +0 .14 )=?0. 06 Professor抯Note:Hereishowaputworks.Assumeashareofstockandaputonitat$75haveacombinedcostof$ 81. Ifthestockpriceatexpirationis$75orless,theputisexercisedandthestocksoldfor$75.Thelossis $6. Question 113 #453 36 Youranswer:Awascorrect!Inaforeigncurrencyswap,bothpartiesexchangefullinterestpayments.TheNewZealandcompanypays6%variableonUSD(USD60,000).TheU.S.companypays7%fixedonNZD(NZD140,000).Question 114 #45338杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question99#45 315 Youranswer:Bwascorrect!Aftertaxyield=pretaxyield (1? marginaltaxrate)=0. 06( 1? 0.28)=0.0432or4.32%.Question100#45 317 Youranswer:Dwascorrect!OfftherunTreasurysecuritiesrefertoolderTreasuryissues.PrefundedmunicipalbondsarebondscollateralizedbyanescrowofsecuritiesguaranteedbytheU.S.government.Revenuebondsaresupportedthroughrevenuesgeneratedfromprojectsthatarefundedwiththehelpoftheoriginalbondissue.Question1 01 #45 318 Youranswer:Bwascorrect!ABEYof8%isequivalenttoa6monthdiscountrateof8/2=4%.r= (1. 0748)0.50 ?1 r=0.0 367 or7.34%onabondequivalentbasisQuestion102#45320杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！CF0=?,000;CF 1 andCF2 =1, 900;CF3=2,500;CF4=2,000.Discount =12 %.ComputeIRR=23 .19 %.Question72#45284Youranswer:Awascorrect!Reliabilityreferstoinformationthatcanbeverified(measuredaccurately)andhasrepresentationalfaithfulness(itiswhatitisreportedtobe).Withoutthesetwocharacteristics,datacannotberelieduponinmakinginvestmentdecisions.Reliableinformationshouldalsoreflectneutralityinthatitdoesnotconsidertheeconomicimpactofthereportedinformation.So,ChoicesB,CandDareallcharacteristicsofreliability.Predictivevalueisnotacharacteristicofreliability;itisassociatedwiththerelevanceofaccountinginformation.Question73#45285Youranswer:Awascorrect!Investorsshouldtakestepstoactuallydiscouragetheuseofthecorporatefundstopay揼reenmail.?Question74#452 86 Youranswer:Cwascorrect!CAPM=0.05 +1. 5(0. 06) =14 %Question75#45287Youranswer:Dwascorrect!Ifthefirmisallequityfinanced,thebreakevenpointforretainedearningsisThus,everydollarthatthefirmspendsontheircapitalbudgetwillbeequitydollars.Question 76 #45288杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Question103#45322Youranswer:Awascorrect!(?(8)(?.005)+(50)(?.005)2=+0.0400+0.0 012 5=+0.0 412 5,orup4 .12 5%.Thepricewouldthusbe $1, 000 1. 0 412 5= $1, 0 41. 25.Question104#45323Youranswer:Bwascorrect!CreatingaCMOcanredistributetheprepaymentriskamongthetranches,butitdoesnotaltertheoverallprepaymentriskofamortgagepassthroughsecurity.CMOsarecreatedfromMBS.AlthoughMBSandcallablebondsbothhavereinvestmentrisk,thecashflowsfromanMBSaredifferentinthatmortgageloansareamortizing.Couponbondsarenotamortizing,andabondcallusuallyinvolvesthewholeissue,whereasprepaymentsareforpartoftheoutstandingprincipal.TheMBSandcouponbonddoshareprepaymentriskbecausethecalloptionbenefitstheissuer,orhomeowner,nottheinvestor.Question105#45325Youranswer:Dwascorrect!Aputprovisionallowstheinvestortoputthebondbacktotheissuerifinterestratesrise.Thus,aputoptionbenefits(andmaybeexercisedby)theholder,nottheissuer.Theotherstatementsaretrue.Interestratefloorsbenefittheholderbyprovidingalowerlimit(orminimum)ontheinterestratethebondholderwillreceive.Tounderstandwhytheprepaymentrightgrantedtoamortgageholderbenefitstheissuer,rememberthattheissuerhereisthehomeowner.Thebankactsasapassthroughfromthehomeownertotheownerofabondcollateralizedbytheloan.Therighttoprepayifinterestratesdecreaseisabenefittothe杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question95#45309Youranswer:Awascorrect!sopriceispositivelyrelatedtothegrowthrateandthedividend,andnegativelyrelatedtotherequiredreturn.ThegrowthrateispositivelyrelatedtoROEandtheretentionratio(g=RR×ROE).Professor抯Note:Startwiththepricingequationandholdallvariablesconstantexceptpricesandtheoneyouareinterestedin.Question 96 #45 310 Youranswer:Dwascorrect!Whenconstructingsamples,researchersmustbevarycarefulnottoincludejustsurvivingcompanies,mutualfunds,orinvestmentnewsletters.Sincesurvivorstendtobethosethathavedonewell(byskillorchance),samplesofmutualfundsthathavea10yeartrackrecords,forexample,willexhibitperformancehistorieswithupwardbias.Mutualfundcompaniesregularlydiscontinuefundswithpoorperformancehistoriesorrolltheirassetsintobetterperformingfunds.Therefore,ChoiceDiscorrect.Question97#45 312 Youranswer:Bwascorrect!Thepriceofabondchangesintheoppositedirectiontothechangeininterestrates.Longterm,lowcouponbondsaremoresensitivethanshorttermandhighcouponbonds.Pricesaremoresensitivetoratedecreasesthantorateincreases(durationrisesasyieldsfall).Question98#45 313 Youranswer:Cwascorrect!ThefriendisincorrectabouttheTIPS(thecouponrateisfixed,theparvalueisadjustedforinflation)andiscorrectaboutthebidaskspreadforontherunissues(ontherunissuesaremoreliquidandthushaveanarrowerbidaskspread).杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Aftertaxcashflowis[300,000?200,000 ?60 ,000?35,000] (1? 0.35)?34, 919 +60 ,000=28,3 31. Question 118 #45342Youranswer:Cwascorrect!Thefeemayactuallybesubstantialsince,inadditiontopayingthemanageroftheFOF,afeemustbepaidtoeachhedgefundwithintheFOF.Question 119 #45343Youranswer:Awascorrect!Openendfundsredeemexistingsharesorissuenewsharesinaccordancewithinvestordemand.Closedendfundsharesarefixedinnumberandtradeonexchangesasthoughtheywerecommonstock.Question120#45344Youranswer:Dwascorrect!Longcommoditiespositionswouldtendtohedgetheriskthatbondswoulddeclineinvaluebecauseofincreasesininflationorbecauseofhigherinterestratesduetoanincreaseintheoveralllevelofeconomicactivity.Sellingbondfutureswouldhedgeagainstrisingrates.Interestrateputsincreaseinvalueasratesfallandwouldnotprovideahedge.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！StandardII(A)MaterialNonpublicInformationrequiresthatmembersandcandidateswhopossessmaterialnonpublicinformationnotactorcauseotherstoactontheinformation.Puttingthestockonarestrictedlist,refusingthetrade,orsharingtheinformationwithhissupervisor,areallpotentialviolationsofthisStandardsincetheyinvolveactingorcausingotherstoactonthenonpublicinformationhepossesses.DeanshouldseektohaveEastStreetmaketheinformationpublic.Ifpublicdisseminationisnotmade,heisnotallowedtoactontheinformation.Refusingtomakethetradehewasinstructedtomakewouldbe揳cting?ontheinformationinthiscase.Theobligationhereistotheintegrityoffinancialmarkets.Question17#45228Youranswer:Cwascorrect!Afirmcanincludenoncompliantperformancedatafortheperiodjustpriortotheperiodofcompliantperformancedata,aslongasnononcompliantdataforperiodsafterJanuary1,2001isincluded,allnoncompliantdataareidentified,andthewaysinwhichthedataarenoncompliantaredisclosed.Firmsmustsupplyalistofcompositesandcompositedescriptionsonlytoclientsandprospectsthatrequestit.Firmsmustaddoneyearofcompliantperformanceinformationeachyearuntilatotaloftenyearsdataarereported.Question18#45229Youranswer:Awascorrect!TheCFAInstitute抯GIPSrequirethat,toclaimcompliance,firmsmustpresentGIPScompliantperformanceinformationforaminimumoffiveyears,orsinceinceptionifinexistencelessthanfiveyears.Question19#45230Youranswer:Bwascorrect!Thisprobleminvolvesdeterminingthepresentvalueofanannuityfollowedbyfindingthepresentvalueofalumpsum.EnterPMT =10 ,000,N =10 ,andI/Y =14 .ComputePV=52, 16 1 . 16 . Thatisthepresentvalueofthe10yearannuity,4yearsfromtoday.Next,weneedtodiscountthatbacktopresentfor4yearstofindtheamountoftheinvestmenttoday.EnterFV=52, 16 1 . 16 , N=4,I/Y =14 ,PMT=0.ComputePV=30,883.59.Question20#452 31 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Asrandomlyselectedsecuritiesareaddedtoaportfolio,thediversifiable(unsystematic)riskdecreases,andtheexpectedlevelofnondiversifiable(systematic)riskremainsthesame.Question82#45294Youranswer:Awascorrect!BasedontheCAPM,theportfolioshouldearn:E(R)=0.05 +1. 5(0 .15 ?0.05)=0.20or20%.Onariskadjustedbasis,thisportfolioliesontheSMLandisthusearningtheproperriskadjustedrateofreturn.Question83#45295Youranswer:Cwascorrect!Theseethicalissuesfallundertheheadingofindividualinvestorconcerns.Someinvestorswouldexcludethesetypesofinvestmentsduetotheirownpersonalpreferences.Question84#452 96 Youranswer:Awascorrect!Tofindthecorrelationcoefficientbetweenthetwostocks,wemustfirstfindthestandarddeviationsofeachstockandthenfindthecovariancebetweenthestocks.Thecorrelationcoefficientisthecovariancedividedbytheproductofthestandarddeviations.YearStock1(xavg)2Stock2(xavg)299 12 16 5000 15 49025 01 ? 12 1 10 25avg=8sum =1 86 avg=5sum=50杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thelawofdiminishingreturnsstatesthatatsomepoint,asmoreofaresourceisusedinaproductionprocess,holdingotherinputsconstant,outputincreasesatadecreasingrate.ThisaccountsfortheupwardslopeoftheSRMCcurvebeyondthatpoint.Returnstoscaledeterminetheshapeofthelongruncostcurves.Question40#452 51 Youranswer:Bwascorrect!Underperfectcompetition,eachfirmfacesaflatdemandcurve.Thismeansthepriceisconstantandthemarginalrevenuelineisflat.AcompanywillcontinuetoproduceaslongasMR>MC,sothecompetitivecompanywillproduceaslongasP>MC.ItwillstopwhenMC=MR=P.Question 41 #45252Youranswer:Cwascorrect!Intheshortrun,thedecisiontooperateisbasedonwhetherpricecoversaveragevariablecosts.Inthelongrun,averagefixedcostsmustbeconsideredaswell.Sunkcostsarehistoricalcosts.Sinkingfundsareestablishedtoretirelongtermdebt.Themarginalrevenuefromsellinganadditionalunitofoutputmustbeatleastasgreatasitsmarginalcostofproduction.Question42#45253Youranswer:Awascorrect!ToconvertMexicanpesopricestoU.S.dollars,divideby12.ShoesarecheaperinMexicoversustheU.S.(40versus50);soaretoys(3versus4)andhats(8versus10).Therefore,theU.S.shouldimportallthreegoodsfromMexico.Question43#45254Youranswer:Cwascorrect!TheAUDdepreciatedbecauseitnowtakesmoreAUDtobyaUSD.Acrossrateistheexchangeratebetweentwocountriesderivedfromtheirexchangerateswithathirdcountry.Directexchangeratesdon抰necessarilyinvolvetheU.S.dollar.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Mean =12 0 /10 =12 ,median =10 ,andmode =10 .Thedistributionisskewedtotheright,sothemeanisgreaterthanthemedianandmode.Generally,forpositivelyskeweddistributions,themodeislessthanthemedian,whichislessthanthemean.Inthiscase,themodeandmedianareequalbecausethenumberofobservationsissmall.Question24#45235Youranswer:Cwascorrect!Thecoefficientofvariation,CV=standarddeviation/arithmeticmean,isacommonmeasureofrelativedispersion(risk).CVW=0.4/0.5=0.80;CVX=0.7/0.9=0.78;CVY=4.7 /1. 2=3.92;andCVZ=5.2 /1. 5=3.47.BecausealowerCVmeanslowerrelativerisk,SecurityXhasthelowestrelativeriskandSecurityYhasthehighestrelativerisk.Question25#452 36 Youranswer:Dwascorrect!TheSharpemeasureforaportfolioiscalculatedasthe(meanportfolioreturn?meanreturnontheriskfreeasset)/portfoliostandarddeviation.TheSharpemeasuresforthefourmutualfundsare:Mutualfund1= (12 ?5) /15 =0.47Mutualfund2= (13 ?5) /18 =0.44Mutualfund3= (15 ?5)/20=0.50Mutualfund4= (18 ?5)/24=0.54Assumingthatinvestorspreferreturnanddislikerisk,theyshouldpreferportfolioswithlargeSharperatiostothosewithsmallerratios.Thus,theinvestorshouldprefermutualfund4.Question 26 #45237Youranswer:Bwascorrect!Subjectiveprobabilityisbasedonpersonaljudgment.Arandomvariableisaquantitywhoseoutcomesareuncertain.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Interestexpense=9,900,8 36. 51 0.0825=$8 16 , 819 . 01 Yearendadjustment=8 16 , 819 . 01? 800,000=$ 16 , 819 . 01 Yearenddebt=$9,900,8 36. 51+ $ 16 , 819 . 01= $9, 917 ,65 5.52Note:Sincethisisadiscountbond,weknowthevaluewillincreaseeachyear,sowereallydidn抰havetodoanycalculationstoanswerthisquestion.Question 66 #45278Youranswer:Dwascorrect!Thereportedannualleaseexpenseforacapitalleaseisthedepreciationoftheassetvalueplustheannualinterestontheremainingleaseliability.Wemustusethelowerrate,theimplicitleaserateof8%,tocalculatethepresentvalueofthe10leasepayments,whichis$20,000.Theannualinterestiscalculatedusingthe8%rateandthe$20,000presentvalueoftheleaseliabilityattheinitiationofthelease.=$2,000Interestexpense(nonoperatingexpense)=($20,000)(0.08)= $1 ,60 0Totalreportedleaseexpense=$3 ,60 0Question67#45279Youranswer:Bwascorrect!Taxbenefitsarerealizedifthelesseeisinalowtaxbracketandthelessorisinahightaxbracket.Anoperatingleaseallowsthelessortoretainthe(greater)taxbenefitsfromdepreciatingtheasset.Forexample,thelessorbenefitsfromusingaccelerateddepreciationonitstaxreturns.Question68#45280Youranswer:Awascorrect!Operatingleasesareatypeofoffbalancesheetfinancing.Ananalystshouldcapitalizeoperatingleasestodevelopmorerepresentativeleverageratiosandtofacilitatecomparison ... 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question35#452 46 Youranswer:Bwascorrect!whereristhenominalriskfreerate.Hence,ThenominalrateintheU.S.is5%=2+3.TheresultisthatUsing (1. 02) (1. 03) ?1= 0.0506fortheU.S.nominalrateproducesaresultof4 .12 %.Question 36 #45247Youranswer:Cwascorrect!OpenmarketoperationsaretheU.S.FederalReserve抯mostoftenusedtoolforchangingthemoneysupply.Question37#45248Youranswer:Dwascorrect!Thedemandforlaborisaderiveddemand.Whenthedemandforthefinalgoodorserviceincreases,thepriceofthatfinalgoodorserviceincreases.Thatincreaseinpricewillleadtothefirmemployingmoreoftheresourcesusedinproductionateachresourceprice,includinglabor.Question38#45249Youranswer:Awascorrect!Intheshortrun,anincreaseinthemoneysupplywillincreaseaggregatedemand.Thenewshortrunequilibriumwillbeatahigherpricelevelandagreaterlevelofrealoutput(GDP).Question39#45250Youranswer:Bwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Tofindthecovariance,wemusttakethecrossproductsofthedifferences.Question85#45297Youranswer:Dwascorrect!Astopbuyorderisaconditionalmarketorderbywhichaninvestordirectsthepurchaseofastockifitrisestoacertainprice.Stopbuysareplacedabovethecurrentmarketprice.Limitorderscanhavemarketpriceasthelimit,usedwhenlackofliquidityisaconcern.Question 86 #45298Youranswer:Dwascorrect!Theshortsellerhopesthatthecurrentpriceistoohighandhopesthatitwillfallinthefuture.However,notradingruleexiststhatrequirestheshortsellertosubsequentlyreplacetheborrowedstockatapricelowerthanthepriceatwhichheorshesoldthestock.Question87#45299Youranswer:Bwascorrect!ThepriceweightedindexonDecember 31, 2005equalsandonDecember 31, 2006equalsTheoneyearholdingperiodreturnisYearDif.Stock1Dif.Stock2CrossProduct99400007??5 01 ?1 5?5杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！homeowner.Ifthehomeownerprepays,theholderofthebondhasreinvestmentrisk.Embeddedoptionsinbondsareinseparablefromtheunderlyingbondandtradewiththatbond.Question1 06 #45327Youranswer:Bwascorrect!Thecleanpriceofthebondisthequotedprice,89 .14 %ofparvalue,whichis$8 91. 40.Question107#45328Youranswer:Dwascorrect!Resettinginterestratesmakesthebondless,notmore,susceptibletointerestratechanges.Question108#45329Youranswer:Dwascorrect!Whentheforeigncurrencyappreciates,eachforeigncurrencydenominatedcashflowbuysmoredomesticcurrencyunits梚ncreasingthedomesticcurrencyreturnfromtheinvestment.Theappreciationoftheforeignassetbenefitstheinvestoraswell.Question109#453 31 Youranswer:Dwascorrect!Forwardsaresubjecttodefaultrisk,butfuturesarenot.Forwardsareprivatecontracts,butfuturesareexchangetraded.Forwardsareindividualizedcontracts,butfuturesarestandardized.Question 110 #45332Youranswer:Cwascorrect!ChoiceAisincorrectbecausespeculatorsenterthefuturesmarketinpursuitofprofit,acceptingriskintheendeavor.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Notethatthepriceisalwaysoneyearbeforethedividenddate.SolveforthePVof $10 tobereceivedintwoyears.FV =10 ;N=2;I/Y =17 ;CPT→PV=$7. 31. Question 91 #45303Youranswer:Dwascorrect!Theforecastyearendprice,P,is:Question92#45304Youranswer:Dwascorrect!Thisindustryappearstobeintherapidacceleratinggrowthphase.Thisphaseischaracterizedbythedevelopmentofnewproductsandrapiddemandgrowth.Thereislimitedcompetition,andsalesgrowthandprofitmarginsarehighandaccelerating.Question93#45305Youranswer:Awascorrect!Supplyanddemandaregovernedbymanyfactors,bothrationalandirrational.Question94#45307Youranswer:Bwascorrect!Specifictradingrulesrequiremuchsubjectivejudgment.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question44#45255Youranswer:Bwascorrect!Anaturalmonopolymayexistwheneconomiesofscalearegreat.Thelargeeconomiesofscalemakeitinefficienttohavemanysmallproducers.Question45#452 56 Youranswer:Bwascorrect!Extraordinaryitemsareunusualandinfrequentitemsthatarereportedseparately,netoftax揵elowtheline.?Question 46 #45257Youranswer:Bwascorrect!Thisisthedirectmethod,whichstartsatthetopoftheincomestatementwithsalesandthenworkswiththeindividualcomponentsofnetincomedirectlyrelatedtocashflows.Question47#45258Netsales+ 1, 200Accountsreceivable(down)+25Cashcollectedfromcustomers+ 1, 225Costofgoodssold?nbsp; 65 0Inventory(up)?nbsp; 10 0Accountspayable(up)+50Cashpaymentsforinputs?nbsp;700Cashinterestpaid?nbsp;45Cashinterestreceived+20Cashflowfromoperations+$500杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！StandardIII(C)Suitability.Membersandcandidatesshouldcarefullyconsidertheneeds,circumstances,andobjectivesofclientsbeforetakinginvestmentaction.However,somemembersandcandidatesaremerelyexecutingspecificinstructionsforretailclients.Inthiscase,sinceWellsbelievesthetradeisunsuitable,Wellsshouldconfirmthattheclientisawaretheactionisunsuitablebeforeexecutingthetradeorrefrainfrommakingthetrade.Question5#452 16 Youranswer:Awascorrect!StandardI(C)Misrepresentation.JameshasactedinappropriatelyinaskingJonestoplagiarizethereportandmayhaveviolatedseveralStandards,includingStandardIV(C)ResponsibilitiesofSupervisors.However,hehasnotviolatedtheprohibitionagainstplagiarisminStandardI(C).Jones,ontheotherhand,evenifactingontherequestofhersupervisor,willviolateStandardI(C)Misrepresentation.Makingminorchangestoareportdoesnotmakeityourown.Question6#45 217 Youranswer:Awascorrect!AccordingtoStandardII(B)MarketManipulation,membersandcandidatesshouldnotengageinanypracticethatwouldartificiallyinflatetradingvolumeordistortprices.However,thisStandarddoesnotprohibittransactionsdonefortaxpurposes.Inthiscase,therewasnointenttomisleadmarketparticipantsastothestockpriceofSafetyAirlines,andthetradeswereundertakentotakeadvantageofalegitimatetaxstrategy.ThustherehasbeennoviolationofStandardII(B)oranyotherStandard.Question7#45 218 Youranswer:Dwascorrect!StandardI(B)IndependenceandObjectivityallowsinvestorpaidresearchbutrequiresthatmembersandcandidateslimitthetypeofcompensationtheyacceptforwritingaresearchreportsothatitisnotdependentontheconclusionsoftheresearchreport.Bestpracticeisforanalyststoonlyacceptaflatfeeforsuchcompanypaidresearchreports.Suchresearchshouldalsoincludecompletedisclosureofthenatureofthecompensationreceivedforwritingsuchareportsothatinvestorswillnotbemisledastotherelationshipbetweentheanalystandthecompany.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thecompanyboughtequipmentfor $12 0,whichwasacashoutflow.Question48#45259Youranswer:Cwascorrect!Question49#45 260 Youranswer:Cwascorrect!Whenusingthedirectmethodofcalculatingoperatingcashflows,depreciationandamortizationarenot揳ddedback?(tonetincome)becausewedon抰beginwithnetincomeunderthedirectmethod.Depreciationandamortizationarenoncashchangesandarenotusedunderthedirectmethod.Theotherstatementsaretrue.Interestpaymentsondebtaffectcashflowfromoperations.Whenusingtheindirectmethod,ananalystshouldaddanylossesonsalesoffixedassetstonetincomesincetheyarenotoperatingcashflows.Question50#45 2 61 Youranswer:Dwascorrect!Inaperiodofrisingprices,LIFOresultsinhigherCOGS,lowertaxes,lowernetincome,lowerinventorybalances,lowerworkingcapital,andhighercashflowsduetolesstaxespaidout.Inafallingpriceenvironment,itisthereverse.Also,FIFOinventoryleadstooppositeresultsforbothrisingandfallingprices.Question 51 #45 262 Youranswer:Awascorrect!Paiddividend?5Saleofstock+275Retireddebt?25Financingcashflow +12 5杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thecircumstancesofthebankruptcydidnotinvolvefraudulentordeceitfulbusinessconduct,sothereforethereisnoviolationofStandardI(D)Misconduct.Hart抯bankruptcydoesnotcompromisehisprofessionalreputationortheintegrityoftheCFAdesignation.Question13#45224Youranswer:Cwascorrect!UndertheCodeandStandards,Marshallhasanobligationtodisclosethatshereceivesspecialcompensationbasedontheamountofclienttradingvolume.StandardVI(A)DisclosureofConflictsrequiresmemberstodisclosetoclientsandprospectsallmattersthatcouldpotentiallyimpairthemember抯abilitytomakeinvestmentdecisionsthatare(andtogiveinvestmentadvicethatis)objectiveandunbiased.Question14#45225Youranswer:Bwascorrect!StandardVI(A)DisclosureofConflicts.Matlockmustdisclose (1) specialrelationships梔irectorshipsandconsultancies,(2)investmentbanking,(3)underwritingandfinancialrelationships,(4)brokerdealermarketmakingactivities,and(5)materialbeneficialownership.ThefactthatMatlock抯sonworksforKingCompanyisnotaconflictrequiringdisclosuretoclientsandprospectssincehissonisnotamanagerofthefirm,inwhichcaseitcouldbe.Question15#452 26 Youranswer:Dwascorrect!UnderStandardIII(E)PreservationofConfidentiality,membersandcandidatesshouldmaintaintheconfidentialityofinformationreceivedinthecourseoftheirprofessionalservicerelatingtobothcurrentandformerclients.Inthecaseofillegalactivity,however,Reillymayhavealegalobligationtoreporttheactivity.Ideally,heshouldconsultwithhisemployerfirstaboutwhatactionshemayberequiredtotake.Ofthechoicesgiven,seekingtheadviceofoutsidecounselastowhetherhehassuchanobligationunderlocallawandwhethertheactivityisindeedillegalistheonepermittedundertheStandard.Question 16 #45227Youranswer:Bwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thecumulativeabsolutefrequencyofthefourthintervalis80,whichisthesumoftheabsolutefrequenciesfromthefirsttothefourthintervals.Question 21 #45232Youranswer:Awascorrect!Inthissituation,thecoefficientofdetermination(R2)isthepercentageoftotalvariationinthedependentvariable(companysales)explainedbythevariationintheindependentvariable(industrysales).totalvariation(SST)=unexplainedvariation(SSE)+explainedvariation(SSR)So,thecoefficientofdeterminationcanbeexpressedas:AnR2 of0 .25indicatesthatthevariationinindustrychipsalesexplains25%ofvariationinsalesofTastyChips.Forasimpleregression(oneindependentvariable)thesquarerootoftheR2isthecorrelationbetweenthevariables,Question22#45233Youranswer:Awascorrect!Theaverageannualcompoundgrowthrateiscalculatedas:[ (1+ 0.25) (1? 0.25) (1+ 0.30) (1? 0.30)]0.25 ?1= 0. 9 61 1? 1=?.0389or?.89%.Aninitial $10 ,000investmentwouldbeworth10,000 (1. 25)(0.75) (1. 3)(0.7)=$8,5 31. Question23#45234Youranswer:Dwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！The95%confidenceintervalis10% ?1. 96( 4%)orfrom2. 16 % to17.84%.Question 31 #45242Youranswer:Awascorrect!Usingthestandardnormalprobabilitydistribution,,thechanceofgettingzeroorlessreturn(losingmoney)is1?0.9772=0.0228%or2.28%.Analternativeexplanation:theexpectedreturnis10%.Tolosemoneymeansthereturnmustfallbelowzero.Zeroisabouttwostandarddeviationstotheleftofthemean.50%ofthetime,areturnwillbebelowthemean,and2.5%oftheobservationsarebelowtwostandarddeviationsdown.About97.5%ofthetime,thereturnwillbeabovezero.Thus,onlyabouta2.5%chanceexistsofhavingavaluebelowzero.Question32#45243Youranswer:Cwascorrect!Accordingtothecentrallimittheorem,thesamplemeanforlargesamplesizeswillbedistributednormallyregardlessofthedistributionoftheunderlyingpopulation.Question33#45244Youranswer:Dwascorrect!Thecrowdingouteffectreferstoareductioninprivateborrowingandspendingasaresultofhigherinterestratesgeneratedbybudgetdeficitsthatarefinancedbyborrowingintheprivateloanablefundsmarket.Question34#45245Youranswer:Awascorrect!Aggregatehoursmeasuresthetotalnumberofhoursworkedinayearbyallemployedpeople.Aggregatehourstakesaccountofboththelevelofemploymentandtheaverageworkweek,makingitsuperiortoeitherofthosemeasuresasanindicatoroftotallaborperformed.Totallaborcompensationisameasureofrealwageratesthatincludeswages,salaries,andemployerpaidbenefits.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question88#45300Youranswer:Cwascorrect!Themarketvaluesoftheindexarecalculatedinthetablebelow.Question89#453 01 Youranswer:Awascorrect!Ifcapitalmarketsareweakformefficientandsemistrongformefficient,nopubliclyavailableinformationcanbeusedtoearnabnormal(riskadjusted)returns.Question90#45302Youranswer:Bwascorrect!Timeline=$0now;$0inyear1;$0inyear2;$1inyear3.December 31, 2005牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋 $10 牋5,000牋$50,000StockB牋$40牋 10 ,000牋$400,000StockC牋$50牋 12 ,000牋 $60 0,000Total牋牋牋 ?1, 050,000December 31, 20 06 牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋 $15 5,000牋$75,000StockB牋$30牋 10 ,000牋$300,000StockC牋$25牋 12 ,000牋$300,000Total牋牋牋牋 $67 5,000杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！COGSFIFO=27,000? (1, 400 ?1, 200)=$ 26, 800.Question62#45273Youranswer:Bwascorrect!Capitalizingcoststendstosmoothearningsandreducesinvestmentcashflows.Itwillalsoincreasecashflowsfromoperationsandincreaseprofitabilityintheearlyyears.Question63#45274Youranswer:Awascorrect!Question64#452 76 Youranswer:Awascorrect!Firstfindthecurrentratio:Next,usealgebratosolveforthelevelofcurrentassetsthatwouldsatisfyacurrentratioof2.4:X =1, 200,000 .1, 200,000 ?1, 000,000=200,000socurrentassetswouldneedtoincreaseby$200,000.Dothesamethingforcurrentliabilities:X=4 16 , 667 .Currentliabilitieswouldneedtodecreaseby500,000?4 16 , 667 =$83,333.Question65#45277Youranswer:Bwascorrect!PMT=800,000;FV =10 ,000,000;N=5;I/Y=8.25;CPT→PV=$9,900,837杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question58#45 269 Youranswer:Bwascorrect!OnlyStatementIIIisfalse.Inperiodsofdecliningprices,LIFOinventoryvalueswillbehigher,leadingtohigherassetandequityvaluesandlowerdebttoequityratios.FIFOinventoryvaluesarepreferredbecausetheybetterapproximatereplacementcost.FIFOCOGS=LIFOCOGS?changeinLIFOreserve.COGS=purchases+beginninginventory?endinginventory,sothereisanegativerelationbetweenCOGSandmisstatementsofendinginventory.Question59#45270Youranswer:Dwascorrect!Question60#452 71 Youranswer:Dwascorrect!Generally,LIFOcausesCOGStobelargeandnetincometobesmall,soswitchingtoFIFOshouldreversethis,forcingCOGSdownandincomeup.Sotheanswershouldbepositive.TheLIFOreservewentup90?85=+5,soswitchingtoFIFOwilldecreaseCOGSby5,000,whichwillincreasegrossprofitby5,000andnetincomeby(5,000) (1? 0.28)=+3 ,60 0.Question 61 #45272Youranswer:Bwascorrect!COGSFIFO=COGSLIFO?(endingLIFOreserve?beginningLIFOreserve)杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！ChoiceBisincorrectbecausehedgerstradefuturestoreducesomepreexistingriskexposure.ChoiceDisincorrectsincetheclearinghousetakesnoactivepositioninthemarket,butinterposesitselfbetweenallpartiestoeverytransaction.Thus,theclearinghouseguaranteesthattradersinthefuturemarketwillhonortheirobligations.Question 111 #45334Youranswer:Bwascorrect!Calloptionsrepresentanobligationtoperforminthecaseoftheseller.Theowneroftheoption(buy)hastheright,butnotanobligation,topurchaseanunderlyinggoodataspecifiedpriceforaspecifiedtimefromtheseller.Question 112 #45335Youranswer:Awascorrect!VT=ST+Max(0,X?ST)VT=$0.70+Max(0,0.75?0.70)=$0.75π=VT?V0?0.75?(S0+P0)=$0.75?(0 .67 +0 .14 )=?0. 06 Professor抯Note:Hereishowaputworks.Assumeashareofstockandaputonitat$75haveacombinedcostof$ 81. Ifthestockpriceatexpirationis$75orless,theputisexercisedandthestocksoldfor$75.Thelossis $6. Question 113 #453 36 Youranswer:Awascorrect!Inaforeigncurrencyswap,bothpartiesexchangefullinterestpayments.TheNewZealandcompanypays6%variableonUSD(USD60,000).TheU.S.companypays7%fixedonNZD(NZD140,000).Question 114 #45338杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question99#45 315 Youranswer:Bwascorrect!Aftertaxyield=pretaxyield (1? marginaltaxrate)=0. 06( 1? 0.28)=0.0432or4.32%.Question100#45 317 Youranswer:Dwascorrect!OfftherunTreasurysecuritiesrefertoolderTreasuryissues.PrefundedmunicipalbondsarebondscollateralizedbyanescrowofsecuritiesguaranteedbytheU.S.government.Revenuebondsaresupportedthroughrevenuesgeneratedfromprojectsthatarefundedwiththehelpoftheoriginalbondissue.Question1 01 #45 318 Youranswer:Bwascorrect!ABEYof8%isequivalenttoa6monthdiscountrateof8/2=4%.r= (1. 0748)0.50 ?1 r=0.0 367 or7.34%onabondequivalentbasisQuestion102#45320杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！CF0=?,000;CF 1 andCF2 =1, 900;CF3=2,500;CF4=2,000.Discount =12 %.ComputeIRR=23 .19 %.Question72#45284Youranswer:Awascorrect!Reliabilityreferstoinformationthatcanbeverified(measuredaccurately)andhasrepresentationalfaithfulness(itiswhatitisreportedtobe).Withoutthesetwocharacteristics,datacannotberelieduponinmakinginvestmentdecisions.Reliableinformationshouldalsoreflectneutralityinthatitdoesnotconsidertheeconomicimpactofthereportedinformation.So,ChoicesB,CandDareallcharacteristicsofreliability.Predictivevalueisnotacharacteristicofreliability;itisassociatedwiththerelevanceofaccountinginformation.Question73#45285Youranswer:Awascorrect!Investorsshouldtakestepstoactuallydiscouragetheuseofthecorporatefundstopay揼reenmail.?Question74#452 86 Youranswer:Cwascorrect!CAPM=0.05 +1. 5(0. 06) =14 %Question75#45287Youranswer:Dwascorrect!Ifthefirmisallequityfinanced,thebreakevenpointforretainedearningsisThus,everydollarthatthefirmspendsontheircapitalbudgetwillbeequitydollars.Question 76 #45288杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Question103#45322Youranswer:Awascorrect!(?(8)(?.005)+(50)(?.005)2=+0.0400+0.0 012 5=+0.0 412 5,orup4 .12 5%.Thepricewouldthusbe $1, 000 1. 0 412 5= $1, 0 41. 25.Question104#45323Youranswer:Bwascorrect!CreatingaCMOcanredistributetheprepaymentriskamongthetranches,butitdoesnotaltertheoverallprepaymentriskofamortgagepassthroughsecurity.CMOsarecreatedfromMBS.AlthoughMBSandcallablebondsbothhavereinvestmentrisk,thecashflowsfromanMBSaredifferentinthatmortgageloansareamortizing.Couponbondsarenotamortizing,andabondcallusuallyinvolvesthewholeissue,whereasprepaymentsareforpartoftheoutstandingprincipal.TheMBSandcouponbonddoshareprepaymentriskbecausethecalloptionbenefitstheissuer,orhomeowner,nottheinvestor.Question105#45325Youranswer:Dwascorrect!Aputprovisionallowstheinvestortoputthebondbacktotheissuerifinterestratesrise.Thus,aputoptionbenefits(andmaybeexercisedby)theholder,nottheissuer.Theotherstatementsaretrue.Interestratefloorsbenefittheholderbyprovidingalowerlimit(orminimum)ontheinterestratethebondholderwillreceive.Tounderstandwhytheprepaymentrightgrantedtoamortgageholderbenefitstheissuer,rememberthattheissuerhereisthehomeowner.Thebankactsasapassthroughfromthehomeownertotheownerofabondcollateralizedbytheloan.Therighttoprepayifinterestratesdecreaseisabenefittothe杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question95#45309Youranswer:Awascorrect!sopriceispositivelyrelatedtothegrowthrateandthedividend,andnegativelyrelatedtotherequiredreturn.ThegrowthrateispositivelyrelatedtoROEandtheretentionratio(g=RR×ROE).Professor抯Note:Startwiththepricingequationandholdallvariablesconstantexceptpricesandtheoneyouareinterestedin.Question 96 #45 310 Youranswer:Dwascorrect!Whenconstructingsamples,researchersmustbevarycarefulnottoincludejustsurvivingcompanies,mutualfunds,orinvestmentnewsletters.Sincesurvivorstendtobethosethathavedonewell(byskillorchance),samplesofmutualfundsthathavea10yeartrackrecords,forexample,willexhibitperformancehistorieswithupwardbias.Mutualfundcompaniesregularlydiscontinuefundswithpoorperformancehistoriesorrolltheirassetsintobetterperformingfunds.Therefore,ChoiceDiscorrect.Question97#45 312 Youranswer:Bwascorrect!Thepriceofabondchangesintheoppositedirectiontothechangeininterestrates.Longterm,lowcouponbondsaremoresensitivethanshorttermandhighcouponbonds.Pricesaremoresensitivetoratedecreasesthantorateincreases(durationrisesasyieldsfall).Question98#45 313 Youranswer:Cwascorrect!ThefriendisincorrectabouttheTIPS(thecouponrateisfixed,theparvalueisadjustedforinflation)andiscorrectaboutthebidaskspreadforontherunissues(ontherunissuesaremoreliquidandthushaveanarrowerbidaskspread).杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Aftertaxcashflowis[300,000?200,000 ?60 ,000?35,000] (1? 0.35)?34, 919 +60 ,000=28,3 31. Question 118 #45342Youranswer:Cwascorrect!Thefeemayactuallybesubstantialsince,inadditiontopayingthemanageroftheFOF,afeemustbepaidtoeachhedgefundwithintheFOF.Question 119 #45343Youranswer:Awascorrect!Openendfundsredeemexistingsharesorissuenewsharesinaccordancewithinvestordemand.Closedendfundsharesarefixedinnumberandtradeonexchangesasthoughtheywerecommonstock.Question120#45344Youranswer:Dwascorrect!Longcommoditiespositionswouldtendtohedgetheriskthatbondswoulddeclineinvaluebecauseofincreasesininflationorbecauseofhigherinterestratesduetoanincreaseintheoveralllevelofeconomicactivity.Sellingbondfutureswouldhedgeagainstrisingrates.Interestrateputsincreaseinvalueasratesfallandwouldnotprovideahedge.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！StandardII(A)MaterialNonpublicInformationrequiresthatmembersandcandidateswhopossessmaterialnonpublicinformationnotactorcauseotherstoactontheinformation.Puttingthestockonarestrictedlist,refusingthetrade,orsharingtheinformationwithhissupervisor,areallpotentialviolationsofthisStandardsincetheyinvolveactingorcausingotherstoactonthenonpublicinformationhepossesses.DeanshouldseektohaveEastStreetmaketheinformationpublic.Ifpublicdisseminationisnotmade,heisnotallowedtoactontheinformation.Refusingtomakethetradehewasinstructedtomakewouldbe揳cting?ontheinformationinthiscase.Theobligationhereistotheintegrityoffinancialmarkets.Question17#45228Youranswer:Cwascorrect!Afirmcanincludenoncompliantperformancedatafortheperiodjustpriortotheperiodofcompliantperformancedata,aslongasnononcompliantdataforperiodsafterJanuary1,2001isincluded,allnoncompliantdataareidentified,andthewaysinwhichthedataarenoncompliantaredisclosed.Firmsmustsupplyalistofcompositesandcompositedescriptionsonlytoclientsandprospectsthatrequestit.Firmsmustaddoneyearofcompliantperformanceinformationeachyearuntilatotaloftenyearsdataarereported.Question18#45229Youranswer:Awascorrect!TheCFAInstitute抯GIPSrequirethat,toclaimcompliance,firmsmustpresentGIPScompliantperformanceinformationforaminimumoffiveyears,orsinceinceptionifinexistencelessthanfiveyears.Question19#45230Youranswer:Bwascorrect!Thisprobleminvolvesdeterminingthepresentvalueofanannuityfollowedbyfindingthepresentvalueofalumpsum.EnterPMT =10 ,000,N =10 ,andI/Y =14 .ComputePV=52, 16 1 . 16 . Thatisthepresentvalueofthe10yearannuity,4yearsfromtoday.Next,weneedtodiscountthatbacktopresentfor4yearstofindtheamountoftheinvestmenttoday.EnterFV=52, 16 1 . 16 , N=4,I/Y =14 ,PMT=0.ComputePV=30,883.59.Question20#452 31 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Asrandomlyselectedsecuritiesareaddedtoaportfolio,thediversifiable(unsystematic)riskdecreases,andtheexpectedlevelofnondiversifiable(systematic)riskremainsthesame.Question82#45294Youranswer:Awascorrect!BasedontheCAPM,theportfolioshouldearn:E(R)=0.05 +1. 5(0 .15 ?0.05)=0.20or20%.Onariskadjustedbasis,thisportfolioliesontheSMLandisthusearningtheproperriskadjustedrateofreturn.Question83#45295Youranswer:Cwascorrect!Theseethicalissuesfallundertheheadingofindividualinvestorconcerns.Someinvestorswouldexcludethesetypesofinvestmentsduetotheirownpersonalpreferences.Question84#452 96 Youranswer:Awascorrect!Tofindthecorrelationcoefficientbetweenthetwostocks,wemustfirstfindthestandarddeviationsofeachstockandthenfindthecovariancebetweenthestocks.Thecorrelationcoefficientisthecovariancedividedbytheproductofthestandarddeviations.YearStock1(xavg)2Stock2(xavg)299 12 16 5000 15 49025 01 ? 12 1 10 25avg=8sum =1 86 avg=5sum=50杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thelawofdiminishingreturnsstatesthatatsomepoint,asmoreofaresourceisusedinaproductionprocess,holdingotherinputsconstant,outputincreasesatadecreasingrate.ThisaccountsfortheupwardslopeoftheSRMCcurvebeyondthatpoint.Returnstoscaledeterminetheshapeofthelongruncostcurves.Question40#452 51 Youranswer:Bwascorrect!Underperfectcompetition,eachfirmfacesaflatdemandcurve.Thismeansthepriceisconstantandthemarginalrevenuelineisflat.AcompanywillcontinuetoproduceaslongasMR>MC,sothecompetitivecompanywillproduceaslongasP>MC.ItwillstopwhenMC=MR=P.Question 41 #45252Youranswer:Cwascorrect!Intheshortrun,thedecisiontooperateisbasedonwhetherpricecoversaveragevariablecosts.Inthelongrun,averagefixedcostsmustbeconsideredaswell.Sunkcostsarehistoricalcosts.Sinkingfundsareestablishedtoretirelongtermdebt.Themarginalrevenuefromsellinganadditionalunitofoutputmustbeatleastasgreatasitsmarginalcostofproduction.Question42#45253Youranswer:Awascorrect!ToconvertMexicanpesopricestoU.S.dollars,divideby12.ShoesarecheaperinMexicoversustheU.S.(40versus50);soaretoys(3versus4)andhats(8versus10).Therefore,theU.S.shouldimportallthreegoodsfromMexico.Question43#45254Youranswer:Cwascorrect!TheAUDdepreciatedbecauseitnowtakesmoreAUDtobyaUSD.Acrossrateistheexchangeratebetweentwocountriesderivedfromtheirexchangerateswithathirdcountry.Directexchangeratesdon抰necessarilyinvolvetheU.S.dollar.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Mean =12 0 /10 =12 ,median =10 ,andmode =10 .Thedistributionisskewedtotheright,sothemeanisgreaterthanthemedianandmode.Generally,forpositivelyskeweddistributions,themodeislessthanthemedian,whichislessthanthemean.Inthiscase,themodeandmedianareequalbecausethenumberofobservationsissmall.Question24#45235Youranswer:Cwascorrect!Thecoefficientofvariation,CV=standarddeviation/arithmeticmean,isacommonmeasureofrelativedispersion(risk).CVW=0.4/0.5=0.80;CVX=0.7/0.9=0.78;CVY=4.7 /1. 2=3.92;andCVZ=5.2 /1. 5=3.47.BecausealowerCVmeanslowerrelativerisk,SecurityXhasthelowestrelativeriskandSecurityYhasthehighestrelativerisk.Question25#452 36 Youranswer:Dwascorrect!TheSharpemeasureforaportfolioiscalculatedasthe(meanportfolioreturn?meanreturnontheriskfreeasset)/portfoliostandarddeviation.TheSharpemeasuresforthefourmutualfundsare:Mutualfund1= (12 ?5) /15 =0.47Mutualfund2= (13 ?5) /18 =0.44Mutualfund3= (15 ?5)/20=0.50Mutualfund4= (18 ?5)/24=0.54Assumingthatinvestorspreferreturnanddislikerisk,theyshouldpreferportfolioswithlargeSharperatiostothosewithsmallerratios.Thus,theinvestorshouldprefermutualfund4.Question 26 #45237Youranswer:Bwascorrect!Subjectiveprobabilityisbasedonpersonaljudgment.Arandomvariableisaquantitywhoseoutcomesareuncertain.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Interestexpense=9,900,8 36. 51 0.0825=$8 16 , 819 . 01 Yearendadjustment=8 16 , 819 . 01? 800,000=$ 16 , 819 . 01 Yearenddebt=$9,900,8 36. 51+ $ 16 , 819 . 01= $9, 917 ,65 5.52Note:Sincethisisadiscountbond,weknowthevaluewillincreaseeachyear,sowereallydidn抰havetodoanycalculationstoanswerthisquestion.Question 66 #45278Youranswer:Dwascorrect!Thereportedannualleaseexpenseforacapitalleaseisthedepreciationoftheassetvalueplustheannualinterestontheremainingleaseliability.Wemustusethelowerrate,theimplicitleaserateof8%,tocalculatethepresentvalueofthe10leasepayments,whichis$20,000.Theannualinterestiscalculatedusingthe8%rateandthe$20,000presentvalueoftheleaseliabilityattheinitiationofthelease.=$2,000Interestexpense(nonoperatingexpense)=($20,000)(0.08)= $1 ,60 0Totalreportedleaseexpense=$3 ,60 0Question67#45279Youranswer:Bwascorrect!Taxbenefitsarerealizedifthelesseeisinalowtaxbracketandthelessorisinahightaxbracket.Anoperatingleaseallowsthelessortoretainthe(greater)taxbenefitsfromdepreciatingtheasset.Forexample,thelessorbenefitsfromusingaccelerateddepreciationonitstaxreturns.Question68#45280Youranswer:Awascorrect!Operatingleasesareatypeofoffbalancesheetfinancing.Ananalystshouldcapitalizeoperatingleasestodevelopmorerepresentativeleverageratiosandtofacilitatecomparison ... 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question35#452 46 Youranswer:Bwascorrect!whereristhenominalriskfreerate.Hence,ThenominalrateintheU.S.is5%=2+3.TheresultisthatUsing (1. 02) (1. 03) ?1= 0.0506fortheU.S.nominalrateproducesaresultof4 .12 %.Question 36 #45247Youranswer:Cwascorrect!OpenmarketoperationsaretheU.S.FederalReserve抯mostoftenusedtoolforchangingthemoneysupply.Question37#45248Youranswer:Dwascorrect!Thedemandforlaborisaderiveddemand.Whenthedemandforthefinalgoodorserviceincreases,thepriceofthatfinalgoodorserviceincreases.Thatincreaseinpricewillleadtothefirmemployingmoreoftheresourcesusedinproductionateachresourceprice,includinglabor.Question38#45249Youranswer:Awascorrect!Intheshortrun,anincreaseinthemoneysupplywillincreaseaggregatedemand.Thenewshortrunequilibriumwillbeatahigherpricelevelandagreaterlevelofrealoutput(GDP).Question39#45250Youranswer:Bwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Tofindthecovariance,wemusttakethecrossproductsofthedifferences.Question85#45297Youranswer:Dwascorrect!Astopbuyorderisaconditionalmarketorderbywhichaninvestordirectsthepurchaseofastockifitrisestoacertainprice.Stopbuysareplacedabovethecurrentmarketprice.Limitorderscanhavemarketpriceasthelimit,usedwhenlackofliquidityisaconcern.Question 86 #45298Youranswer:Dwascorrect!Theshortsellerhopesthatthecurrentpriceistoohighandhopesthatitwillfallinthefuture.However,notradingruleexiststhatrequirestheshortsellertosubsequentlyreplacetheborrowedstockatapricelowerthanthepriceatwhichheorshesoldthestock.Question87#45299Youranswer:Bwascorrect!ThepriceweightedindexonDecember 31, 2005equalsandonDecember 31, 2006equalsTheoneyearholdingperiodreturnisYearDif.Stock1Dif.Stock2CrossProduct99400007??5 01 ?1 5?5杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！homeowner.Ifthehomeownerprepays,theholderofthebondhasreinvestmentrisk.Embeddedoptionsinbondsareinseparablefromtheunderlyingbondandtradewiththatbond.Question1 06 #45327Youranswer:Bwascorrect!Thecleanpriceofthebondisthequotedprice,89 .14 %ofparvalue,whichis$8 91. 40.Question107#45328Youranswer:Dwascorrect!Resettinginterestratesmakesthebondless,notmore,susceptibletointerestratechanges.Question108#45329Youranswer:Dwascorrect!Whentheforeigncurrencyappreciates,eachforeigncurrencydenominatedcashflowbuysmoredomesticcurrencyunits梚ncreasingthedomesticcurrencyreturnfromtheinvestment.Theappreciationoftheforeignassetbenefitstheinvestoraswell.Question109#453 31 Youranswer:Dwascorrect!Forwardsaresubjecttodefaultrisk,butfuturesarenot.Forwardsareprivatecontracts,butfuturesareexchangetraded.Forwardsareindividualizedcontracts,butfuturesarestandardized.Question 110 #45332Youranswer:Cwascorrect!ChoiceAisincorrectbecausespeculatorsenterthefuturesmarketinpursuitofprofit,acceptingriskintheendeavor.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Notethatthepriceisalwaysoneyearbeforethedividenddate.SolveforthePVof $10 tobereceivedintwoyears.FV =10 ;N=2;I/Y =17 ;CPT→PV=$7. 31. Question 91 #45303Youranswer:Dwascorrect!Theforecastyearendprice,P,is:Question92#45304Youranswer:Dwascorrect!Thisindustryappearstobeintherapidacceleratinggrowthphase.Thisphaseischaracterizedbythedevelopmentofnewproductsandrapiddemandgrowth.Thereislimitedcompetition,andsalesgrowthandprofitmarginsarehighandaccelerating.Question93#45305Youranswer:Awascorrect!Supplyanddemandaregovernedbymanyfactors,bothrationalandirrational.Question94#45307Youranswer:Bwascorrect!Specifictradingrulesrequiremuchsubjectivejudgment.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question44#45255Youranswer:Bwascorrect!Anaturalmonopolymayexistwheneconomiesofscalearegreat.Thelargeeconomiesofscalemakeitinefficienttohavemanysmallproducers.Question45#452 56 Youranswer:Bwascorrect!Extraordinaryitemsareunusualandinfrequentitemsthatarereportedseparately,netoftax揵elowtheline.?Question 46 #45257Youranswer:Bwascorrect!Thisisthedirectmethod,whichstartsatthetopoftheincomestatementwithsalesandthenworkswiththeindividualcomponentsofnetincomedirectlyrelatedtocashflows.Question47#45258Netsales+ 1, 200Accountsreceivable(down)+25Cashcollectedfromcustomers+ 1, 225Costofgoodssold?nbsp; 65 0Inventory(up)?nbsp; 10 0Accountspayable(up)+50Cashpaymentsforinputs?nbsp;700Cashinterestpaid?nbsp;45Cashinterestreceived+20Cashflowfromoperations+$500杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！StandardIII(C)Suitability.Membersandcandidatesshouldcarefullyconsidertheneeds,circumstances,andobjectivesofclientsbeforetakinginvestmentaction.However,somemembersandcandidatesaremerelyexecutingspecificinstructionsforretailclients.Inthiscase,sinceWellsbelievesthetradeisunsuitable,Wellsshouldconfirmthattheclientisawaretheactionisunsuitablebeforeexecutingthetradeorrefrainfrommakingthetrade.Question5#452 16 Youranswer:Awascorrect!StandardI(C)Misrepresentation.JameshasactedinappropriatelyinaskingJonestoplagiarizethereportandmayhaveviolatedseveralStandards,includingStandardIV(C)ResponsibilitiesofSupervisors.However,hehasnotviolatedtheprohibitionagainstplagiarisminStandardI(C).Jones,ontheotherhand,evenifactingontherequestofhersupervisor,willviolateStandardI(C)Misrepresentation.Makingminorchangestoareportdoesnotmakeityourown.Question6#45 217 Youranswer:Awascorrect!AccordingtoStandardII(B)MarketManipulation,membersandcandidatesshouldnotengageinanypracticethatwouldartificiallyinflatetradingvolumeordistortprices.However,thisStandarddoesnotprohibittransactionsdonefortaxpurposes.Inthiscase,therewasnointenttomisleadmarketparticipantsastothestockpriceofSafetyAirlines,andthetradeswereundertakentotakeadvantageofalegitimatetaxstrategy.ThustherehasbeennoviolationofStandardII(B)oranyotherStandard.Question7#45 218 Youranswer:Dwascorrect!StandardI(B)IndependenceandObjectivityallowsinvestorpaidresearchbutrequiresthatmembersandcandidateslimitthetypeofcompensationtheyacceptforwritingaresearchreportsothatitisnotdependentontheconclusionsoftheresearchreport.Bestpracticeisforanalyststoonlyacceptaflatfeeforsuchcompanypaidresearchreports.Suchresearchshouldalsoincludecompletedisclosureofthenatureofthecompensationreceivedforwritingsuchareportsothatinvestorswillnotbemisledastotherelationshipbetweentheanalystandthecompany.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thecompanyboughtequipmentfor $12 0,whichwasacashoutflow.Question48#45259Youranswer:Cwascorrect!Question49#45 260 Youranswer:Cwascorrect!Whenusingthedirectmethodofcalculatingoperatingcashflows,depreciationandamortizationarenot揳ddedback?(tonetincome)becausewedon抰beginwithnetincomeunderthedirectmethod.Depreciationandamortizationarenoncashchangesandarenotusedunderthedirectmethod.Theotherstatementsaretrue.Interestpaymentsondebtaffectcashflowfromoperations.Whenusingtheindirectmethod,ananalystshouldaddanylossesonsalesoffixedassetstonetincomesincetheyarenotoperatingcashflows.Question50#45 2 61 Youranswer:Dwascorrect!Inaperiodofrisingprices,LIFOresultsinhigherCOGS,lowertaxes,lowernetincome,lowerinventorybalances,lowerworkingcapital,andhighercashflowsduetolesstaxespaidout.Inafallingpriceenvironment,itisthereverse.Also,FIFOinventoryleadstooppositeresultsforbothrisingandfallingprices.Question 51 #45 262 Youranswer:Awascorrect!Paiddividend?5Saleofstock+275Retireddebt?25Financingcashflow +12 5杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thecircumstancesofthebankruptcydidnotinvolvefraudulentordeceitfulbusinessconduct,sothereforethereisnoviolationofStandardI(D)Misconduct.Hart抯bankruptcydoesnotcompromisehisprofessionalreputationortheintegrityoftheCFAdesignation.Question13#45224Youranswer:Cwascorrect!UndertheCodeandStandards,Marshallhasanobligationtodisclosethatshereceivesspecialcompensationbasedontheamountofclienttradingvolume.StandardVI(A)DisclosureofConflictsrequiresmemberstodisclosetoclientsandprospectsallmattersthatcouldpotentiallyimpairthemember抯abilitytomakeinvestmentdecisionsthatare(andtogiveinvestmentadvicethatis)objectiveandunbiased.Question14#45225Youranswer:Bwascorrect!StandardVI(A)DisclosureofConflicts.Matlockmustdisclose (1) specialrelationships梔irectorshipsandconsultancies,(2)investmentbanking,(3)underwritingandfinancialrelationships,(4)brokerdealermarketmakingactivities,and(5)materialbeneficialownership.ThefactthatMatlock抯sonworksforKingCompanyisnotaconflictrequiringdisclosuretoclientsandprospectssincehissonisnotamanagerofthefirm,inwhichcaseitcouldbe.Question15#452 26 Youranswer:Dwascorrect!UnderStandardIII(E)PreservationofConfidentiality,membersandcandidatesshouldmaintaintheconfidentialityofinformationreceivedinthecourseoftheirprofessionalservicerelatingtobothcurrentandformerclients.Inthecaseofillegalactivity,however,Reillymayhavealegalobligationtoreporttheactivity.Ideally,heshouldconsultwithhisemployerfirstaboutwhatactionshemayberequiredtotake.Ofthechoicesgiven,seekingtheadviceofoutsidecounselastowhetherhehassuchanobligationunderlocallawandwhethertheactivityisindeedillegalistheonepermittedundertheStandard.Question 16 #45227Youranswer:Bwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Bwascorrect!Thecumulativeabsolutefrequencyofthefourthintervalis80,whichisthesumoftheabsolutefrequenciesfromthefirsttothefourthintervals.Question 21 #45232Youranswer:Awascorrect!Inthissituation,thecoefficientofdetermination(R2)isthepercentageoftotalvariationinthedependentvariable(companysales)explainedbythevariationintheindependentvariable(industrysales).totalvariation(SST)=unexplainedvariation(SSE)+explainedvariation(SSR)So,thecoefficientofdeterminationcanbeexpressedas:AnR2 of0 .25indicatesthatthevariationinindustrychipsalesexplains25%ofvariationinsalesofTastyChips.Forasimpleregression(oneindependentvariable)thesquarerootoftheR2isthecorrelationbetweenthevariables,Question22#45233Youranswer:Awascorrect!Theaverageannualcompoundgrowthrateiscalculatedas:[ (1+ 0.25) (1? 0.25) (1+ 0.30) (1? 0.30)]0.25 ?1= 0. 9 61 1? 1=?.0389or?.89%.Aninitial $10 ,000investmentwouldbeworth10,000 (1. 25)(0.75) (1. 3)(0.7)=$8,5 31. Question23#45234Youranswer:Dwascorrect!杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！The95%confidenceintervalis10% ?1. 96( 4%)orfrom2. 16 % to17.84%.Question 31 #45242Youranswer:Awascorrect!Usingthestandardnormalprobabilitydistribution,,thechanceofgettingzeroorlessreturn(losingmoney)is1?0.9772=0.0228%or2.28%.Analternativeexplanation:theexpectedreturnis10%.Tolosemoneymeansthereturnmustfallbelowzero.Zeroisabouttwostandarddeviationstotheleftofthemean.50%ofthetime,areturnwillbebelowthemean,and2.5%oftheobservationsarebelowtwostandarddeviationsdown.About97.5%ofthetime,thereturnwillbeabovezero.Thus,onlyabouta2.5%chanceexistsofhavingavaluebelowzero.Question32#45243Youranswer:Cwascorrect!Accordingtothecentrallimittheorem,thesamplemeanforlargesamplesizeswillbedistributednormallyregardlessofthedistributionoftheunderlyingpopulation.Question33#45244Youranswer:Dwascorrect!Thecrowdingouteffectreferstoareductioninprivateborrowingandspendingasaresultofhigherinterestratesgeneratedbybudgetdeficitsthatarefinancedbyborrowingintheprivateloanablefundsmarket.Question34#45245Youranswer:Awascorrect!Aggregatehoursmeasuresthetotalnumberofhoursworkedinayearbyallemployedpeople.Aggregatehourstakesaccountofboththelevelofemploymentandtheaverageworkweek,makingitsuperiortoeitherofthosemeasuresasanindicatoroftotallaborperformed.Totallaborcompensationisameasureofrealwageratesthatincludeswages,salaries,andemployerpaidbenefits.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question88#45300Youranswer:Cwascorrect!Themarketvaluesoftheindexarecalculatedinthetablebelow.Question89#453 01 Youranswer:Awascorrect!Ifcapitalmarketsareweakformefficientandsemistrongformefficient,nopubliclyavailableinformationcanbeusedtoearnabnormal(riskadjusted)returns.Question90#45302Youranswer:Bwascorrect!Timeline=$0now;$0inyear1;$0inyear2;$1inyear3.December 31, 2005牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋 $10 牋5,000牋$50,000StockB牋$40牋 10 ,000牋$400,000StockC牋$50牋 12 ,000牋 $60 0,000Total牋牋牋 ?1, 050,000December 31, 20 06 牋SharePrice牋NumberofSharesOutstanding牋MarketValueStockA牋 $15 5,000牋$75,000StockB牋$30牋 10 ,000牋$300,000StockC牋$25牋 12 ,000牋$300,000Total牋牋牋牋 $67 5,000杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！COGSFIFO=27,000? (1, 400 ?1, 200)=$ 26, 800.Question62#45273Youranswer:Bwascorrect!Capitalizingcoststendstosmoothearningsandreducesinvestmentcashflows.Itwillalsoincreasecashflowsfromoperationsandincreaseprofitabilityintheearlyyears.Question63#45274Youranswer:Awascorrect!Question64#452 76 Youranswer:Awascorrect!Firstfindthecurrentratio:Next,usealgebratosolveforthelevelofcurrentassetsthatwouldsatisfyacurrentratioof2.4:X =1, 200,000 .1, 200,000 ?1, 000,000=200,000socurrentassetswouldneedtoincreaseby$200,000.Dothesamethingforcurrentliabilities:X=4 16 , 667 .Currentliabilitieswouldneedtodecreaseby500,000?4 16 , 667 =$83,333.Question65#45277Youranswer:Bwascorrect!PMT=800,000;FV =10 ,000,000;N=5;I/Y=8.25;CPT→PV=$9,900,837杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question58#45 269 Youranswer:Bwascorrect!OnlyStatementIIIisfalse.Inperiodsofdecliningprices,LIFOinventoryvalueswillbehigher,leadingtohigherassetandequityvaluesandlowerdebttoequityratios.FIFOinventoryvaluesarepreferredbecausetheybetterapproximatereplacementcost.FIFOCOGS=LIFOCOGS?changeinLIFOreserve.COGS=purchases+beginninginventory?endinginventory,sothereisanegativerelationbetweenCOGSandmisstatementsofendinginventory.Question59#45270Youranswer:Dwascorrect!Question60#452 71 Youranswer:Dwascorrect!Generally,LIFOcausesCOGStobelargeandnetincometobesmall,soswitchingtoFIFOshouldreversethis,forcingCOGSdownandincomeup.Sotheanswershouldbepositive.TheLIFOreservewentup90?85=+5,soswitchingtoFIFOwilldecreaseCOGSby5,000,whichwillincreasegrossprofitby5,000andnetincomeby(5,000) (1? 0.28)=+3 ,60 0.Question 61 #45272Youranswer:Bwascorrect!COGSFIFO=COGSLIFO?(endingLIFOreserve?beginningLIFOreserve)杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！ChoiceBisincorrectbecausehedgerstradefuturestoreducesomepreexistingriskexposure.ChoiceDisincorrectsincetheclearinghousetakesnoactivepositioninthemarket,butinterposesitselfbetweenallpartiestoeverytransaction.Thus,theclearinghouseguaranteesthattradersinthefuturemarketwillhonortheirobligations.Question 111 #45334Youranswer:Bwascorrect!Calloptionsrepresentanobligationtoperforminthecaseoftheseller.Theowneroftheoption(buy)hastheright,butnotanobligation,topurchaseanunderlyinggoodataspecifiedpriceforaspecifiedtimefromtheseller.Question 112 #45335Youranswer:Awascorrect!VT=ST+Max(0,X?ST)VT=$0.70+Max(0,0.75?0.70)=$0.75π=VT?V0?0.75?(S0+P0)=$0.75?(0 .67 +0 .14 )=?0. 06 Professor抯Note:Hereishowaputworks.Assumeashareofstockandaputonitat$75haveacombinedcostof$ 81. Ifthestockpriceatexpirationis$75orless,theputisexercisedandthestocksoldfor$75.Thelossis $6. Question 113 #453 36 Youranswer:Awascorrect!Inaforeigncurrencyswap,bothpartiesexchangefullinterestpayments.TheNewZealandcompanypays6%variableonUSD(USD60,000).TheU.S.companypays7%fixedonNZD(NZD140,000).Question 114 #45338杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question99#45 315 Youranswer:Bwascorrect!Aftertaxyield=pretaxyield (1? marginaltaxrate)=0. 06( 1? 0.28)=0.0432or4.32%.Question100#45 317 Youranswer:Dwascorrect!OfftherunTreasurysecuritiesrefertoolderTreasuryissues.PrefundedmunicipalbondsarebondscollateralizedbyanescrowofsecuritiesguaranteedbytheU.S.government.Revenuebondsaresupportedthroughrevenuesgeneratedfromprojectsthatarefundedwiththehelpoftheoriginalbondissue.Question1 01 #45 318 Youranswer:Bwascorrect!ABEYof8%isequivalenttoa6monthdiscountrateof8/2=4%.r= (1. 0748)0.50 ?1 r=0.0 367 or7.34%onabondequivalentbasisQuestion102#45320杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！CF0=?,000;CF 1 andCF2 =1, 900;CF3=2,500;CF4=2,000.Discount =12 %.ComputeIRR=23 .19 %.Question72#45284Youranswer:Awascorrect!Reliabilityreferstoinformationthatcanbeverified(measuredaccurately)andhasrepresentationalfaithfulness(itiswhatitisreportedtobe).Withoutthesetwocharacteristics,datacannotberelieduponinmakinginvestmentdecisions.Reliableinformationshouldalsoreflectneutralityinthatitdoesnotconsidertheeconomicimpactofthereportedinformation.So,ChoicesB,CandDareallcharacteristicsofreliability.Predictivevalueisnotacharacteristicofreliability;itisassociatedwiththerelevanceofaccountinginformation.Question73#45285Youranswer:Awascorrect!Investorsshouldtakestepstoactuallydiscouragetheuseofthecorporatefundstopay揼reenmail.?Question74#452 86 Youranswer:Cwascorrect!CAPM=0.05 +1. 5(0. 06) =14 %Question75#45287Youranswer:Dwascorrect!Ifthefirmisallequityfinanced,thebreakevenpointforretainedearningsisThus,everydollarthatthefirmspendsontheircapitalbudgetwillbeequitydollars.Question 76 #45288杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Question103#45322Youranswer:Awascorrect!(?(8)(?.005)+(50)(?.005)2=+0.0400+0.0 012 5=+0.0 412 5,orup4 .12 5%.Thepricewouldthusbe $1, 000 1. 0 412 5= $1, 0 41. 25.Question104#45323Youranswer:Bwascorrect!CreatingaCMOcanredistributetheprepaymentriskamongthetranches,butitdoesnotaltertheoverallprepaymentriskofamortgagepassthroughsecurity.CMOsarecreatedfromMBS.AlthoughMBSandcallablebondsbothhavereinvestmentrisk,thecashflowsfromanMBSaredifferentinthatmortgageloansareamortizing.Couponbondsarenotamortizing,andabondcallusuallyinvolvesthewholeissue,whereasprepaymentsareforpartoftheoutstandingprincipal.TheMBSandcouponbonddoshareprepaymentriskbecausethecalloptionbenefitstheissuer,orhomeowner,nottheinvestor.Question105#45325Youranswer:Dwascorrect!Aputprovisionallowstheinvestortoputthebondbacktotheissuerifinterestratesrise.Thus,aputoptionbenefits(andmaybeexercisedby)theholder,nottheissuer.Theotherstatementsaretrue.Interestratefloorsbenefittheholderbyprovidingalowerlimit(orminimum)ontheinterestratethebondholderwillreceive.Tounderstandwhytheprepaymentrightgrantedtoamortgageholderbenefitstheissuer,rememberthattheissuerhereisthehomeowner.Thebankactsasapassthroughfromthehomeownertotheownerofabondcollateralizedbytheloan.Therighttoprepayifinterestratesdecreaseisabenefittothe杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Question95#45309Youranswer:Awascorrect!sopriceispositivelyrelatedtothegrowthrateandthedividend,andnegativelyrelatedtotherequiredreturn.ThegrowthrateispositivelyrelatedtoROEandtheretentionratio(g=RR×ROE).Professor抯Note:Startwiththepricingequationandholdallvariablesconstantexceptpricesandtheoneyouareinterestedin.Question 96 #45 310 Youranswer:Dwascorrect!Whenconstructingsamples,researchersmustbevarycarefulnottoincludejustsurvivingcompanies,mutualfunds,orinvestmentnewsletters.Sincesurvivorstendtobethosethathavedonewell(byskillorchance),samplesofmutualfundsthathavea10yeartrackrecords,forexample,willexhibitperformancehistorieswithupwardbias.Mutualfundcompaniesregularlydiscontinuefundswithpoorperformancehistoriesorrolltheirassetsintobetterperformingfunds.Therefore,ChoiceDiscorrect.Question97#45 312 Youranswer:Bwascorrect!Thepriceofabondchangesintheoppositedirectiontothechangeininterestrates.Longterm,lowcouponbondsaremoresensitivethanshorttermandhighcouponbonds.Pricesaremoresensitivetoratedecreasesthantorateincreases(durationrisesasyieldsfall).Question98#45 313 Youranswer:Cwascorrect!ThefriendisincorrectabouttheTIPS(thecouponrateisfixed,theparvalueisadjustedforinflation)andiscorrectaboutthebidaskspreadforontherunissues(ontherunissuesaremoreliquidandthushaveanarrowerbidaskspread).杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Aftertaxcashflowis[300,000?200,000 ?60 ,000?35,000] (1? 0.35)?34, 919 +60 ,000=28,3 31. Question 118 #45342Youranswer:Cwascorrect!Thefeemayactuallybesubstantialsince,inadditiontopayingthemanageroftheFOF,afeemustbepaidtoeachhedgefundwithintheFOF.Question 119 #45343Youranswer:Awascorrect!Openendfundsredeemexistingsharesorissuenewsharesinaccordancewithinvestordemand.Closedendfundsharesarefixedinnumberandtradeonexchangesasthoughtheywerecommonstock.Question120#45344Youranswer:Dwascorrect!Longcommoditiespositionswouldtendtohedgetheriskthatbondswoulddeclineinvaluebecauseofincreasesininflationorbecauseofhigherinterestratesduetoanincreaseintheoveralllevelofeconomicactivity.Sellingbondfutureswouldhedgeagainstrisingrates.Interestrateputsincreaseinvalueasratesfallandwouldnotprovideahedge.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！StandardII(A)MaterialNonpublicInformationrequiresthatmembersandcandidateswhopossessmaterialnonpublicinformationnotactorcauseotherstoactontheinformation.Puttingthestockonarestrictedlist,refusingthetrade,orsharingtheinformationwithhissupervisor,areallpotentialviolationsofthisStandardsincetheyinvolveactingorcausingotherstoactonthenonpublicinformationhepossesses.DeanshouldseektohaveEastStreetmaketheinformationpublic.Ifpublicdisseminationisnotmade,heisnotallowedtoactontheinformation.Refusingtomakethetradehewasinstructedtomakewouldbe揳cting?ontheinformationinthiscase.Theobligationhereistotheintegrityoffinancialmarkets.Question17#45228Youranswer:Cwascorrect!Afirmcanincludenoncompliantperformancedatafortheperiodjustpriortotheperiodofcompliantperformancedata,aslongasnononcompliantdataforperiodsafterJanuary1,2001isincluded,allnoncompliantdataareidentified,andthewaysinwhichthedataarenoncompliantaredisclosed.Firmsmustsupplyalistofcompositesandcompositedescriptionsonlytoclientsandprospectsthatrequestit.Firmsmustaddoneyearofcompliantperformanceinformationeachyearuntilatotaloftenyearsdataarereported.Question18#45229Youranswer:Awascorrect!TheCFAInstitute抯GIPSrequirethat,toclaimcompliance,firmsmustpresentGIPScompliantperformanceinformationforaminimumoffiveyears,orsinceinceptionifinexistencelessthanfiveyears.Question19#45230Youranswer:Bwascorrect!Thisprobleminvolvesdeterminingthepresentvalueofanannuityfollowedbyfindingthepresentvalueofalumpsum.EnterPMT =10 ,000,N =10 ,andI/Y =14 .ComputePV=52, 16 1 . 16 . Thatisthepresentvalueofthe10yearannuity,4yearsfromtoday.Next,weneedtodiscountthatbacktopresentfor4yearstofindtheamountoftheinvestmenttoday.EnterFV=52, 16 1 . 16 , N=4,I/Y =14 ,PMT=0.ComputePV=30,883.59.Question20#452 31 杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Youranswer:Dwascorrect!Asrandomlyselectedsecuritiesareaddedtoaportfolio,thediversifiable(unsystematic)riskdecreases,andtheexpectedlevelofnondiversifiable(systematic)riskremainsthesame.Question82#45294Youranswer:Awascorrect!BasedontheCAPM,theportfolioshouldearn:E(R)=0.05 +1. 5(0 .15 ?0.05)=0.20or20%.Onariskadjustedbasis,thisportfolioliesontheSMLandisthusearningtheproperriskadjustedrateofreturn.Question83#45295Youranswer:Cwascorrect!Theseethicalissuesfallundertheheadingofindividualinvestorconcerns.Someinvestorswouldexcludethesetypesofinvestmentsduetotheirownpersonalpreferences.Question84#452 96 Youranswer:Awascorrect!Tofindthecorrelationcoefficientbetweenthetwostocks,wemustfirstfindthestandarddeviationsofeachstockandthenfindthecovariancebetweenthestocks.Thecorrelationcoefficientisthecovariancedividedbytheproductofthestandarddeviations.YearStock1(xavg)2Stock2(xavg)299 12 16 5000 15 49025 01 ? 12 1 10 25avg=8sum =1 86 avg=5sum=50杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Thelawofdiminishingreturnsstatesthatatsomepoint,asmoreofaresourceisusedinaproductionprocess,holdingotherinputsconstant,outputincreasesatadecreasingrate.ThisaccountsfortheupwardslopeoftheSRMCcurvebeyondthatpoint.Returnstoscaledeterminetheshapeofthelongruncostcurves.Question40#452 51 Youranswer:Bwascorrect!Underperfectcompetition,eachfirmfacesaflatdemandcurve.Thismeansthepriceisconstantandthemarginalrevenuelineisflat.AcompanywillcontinuetoproduceaslongasMR>MC,sothecompetitivecompanywillproduceaslongasP>MC.ItwillstopwhenMC=MR=P.Question 41 #45252Youranswer:Cwascorrect!Intheshortrun,thedecisiontooperateisbasedonwhetherpricecoversaveragevariablecosts.Inthelongrun,averagefixedcostsmustbeconsideredaswell.Sunkcostsarehistoricalcosts.Sinkingfundsareestablishedtoretirelongtermdebt.Themarginalrevenuefromsellinganadditionalunitofoutputmustbeatleastasgreatasitsmarginalcostofproduction.Question42#45253Youranswer:Awascorrect!ToconvertMexicanpesopricestoU.S.dollars,divideby12.ShoesarecheaperinMexicoversustheU.S.(40versus50);soaretoys(3versus4)andhats(8versus10).Therefore,theU.S.shouldimportallthreegoodsfromMexico.Question43#45254Youranswer:Cwascorrect!TheAUDdepreciatedbecauseitnowtakesmoreAUDtobyaUSD.Acrossrateistheexchangeratebetweentwocountriesderivedfromtheirexchangerateswithathirdcountry.Directexchangeratesdon抰necessarilyinvolvetheU.S.dollar.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Mean =12 0 /10 =12 ,median =10 ,andmode =10 .Thedistributionisskewedtotheright,sothemeanisgreaterthanthemedianandmode.Generally,forpositivelyskeweddistributions,themodeislessthanthemedian,whichislessthanthemean.Inthiscase,themodeandmedianareequalbecausethenumberofobservationsissmall.Question24#45235Youranswer:Cwascorrect!Thecoefficientofvariation,CV=standarddeviation/arithmeticmean,isacommonmeasureofrelativedispersion(risk).CVW=0.4/0.5=0.80;CVX=0.7/0.9=0.78;CVY=4.7 /1. 2=3.92;andCVZ=5.2 /1. 5=3.47.BecausealowerCVmeanslowerrelativerisk,SecurityXhasthelowestrelativeriskandSecurityYhasthehighestrelativerisk.Question25#452 36 Youranswer:Dwascorrect!TheSharpemeasureforaportfolioiscalculatedasthe(meanportfolioreturn?meanreturnontheriskfreeasset)/portfoliostandarddeviation.TheSharpemeasuresforthefourmutualfundsare:Mutualfund1= (12 ?5) /15 =0.47Mutualfund2= (13 ?5) /18 =0.44Mutualfund3= (15 ?5)/20=0.50Mutualfund4= (18 ?5)/24=0.54Assumingthatinvestorspreferreturnanddislikerisk,theyshouldpreferportfolioswithlargeSharperatiostothosewithsmallerratios.Thus,theinvestorshouldprefermutualfund4.Question 26 #45237Youranswer:Bwascorrect!Subjectiveprobabilityisbasedonpersonaljudgment.Arandomvariableisaquantitywhoseoutcomesareuncertain.杨 13 818 157537CFA资料专卖欢迎广大考友订购！彩色原版印刷书籍，用解释向您诠释真正原版影印，别家均是用我司书籍再次复印，没有 6 解释！买本公司notes看的舒心，用的放心，祝您一次通过！Interestexpense=9,900,8 36. 51 0.0825=$8 16 , 819 . 01 Yearendadjustment=8 16 , 819 . 01? 800,000=$ 16 , 819 . 01 Yearenddebt=$9,900,8 36. 51+ $ 16 , 819 . 01= $9, 917 ,65 5.52Note:Sincethisisadiscountbond,weknowthevaluewillincreaseeachyear,sowereallydidn抰havetodoanycalculationstoanswerthisquestion.Question 66 #45278Youranswer:Dwascorrect!Thereportedannualleaseexpenseforacapitalleaseisthedepreciationoftheassetvalueplustheannualinterestontheremainingleaseliability.Wemustusethelowerrate,theimplicitleaserateof8%,tocalculatethepresentvalueofthe10leasepayments,whichis$20,000.Theannualinterestiscalculatedusingthe8%rateandthe$20,000presentvalueoftheleaseliabilityattheinitiationofthelease.=$2,000Interestexpense(nonoperatingexpense)=($20,000)(0.08)= $1 ,60 0Totalreportedleaseexpense=$3 ,60 0Question67#45279Youranswer:Bwascorrect!Taxbenefitsarerealizedifthelesseeisinalowtaxbracketandthelessorisinahightaxbracket.Anoperatingleaseallowsthelessortoretainthe(greater)taxbenefitsfromdepreciatingtheasset.Forexample,thelessorbenefitsfromusingaccelerateddepreciationonitstaxreturns.Question68#45280Youranswer:Awascorrect!Operatingleasesareatypeofoffbalancesheetfinancing.Ananalystshouldcapitalizeoperatingleasestodevelopmorerepresentativeleverageratiosandtofacilitatecomparison...
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The Man Who Laughs Victor Hugo Part 2 Book 6 Chapter 1 docx
... constable has seized him, the justice of the quorum has carried him off, the sheriff has him in custody. At this moment he is probably being examined by a serjeant of the coif. They pluck out your ... The Man Who Laughs Victor Hugo Part 2 Book 6 Chapter 1 What the Misanthrope Said After Ursus had seen Gwynplaine thrust within the gates of Southwark Jail, he remained, haggard, in ... sin, and she blind of both eyes! Where was the use of depriving myself of everything for their sakes? The beggars grow up, forsooth, and make love to each other. The flirtations of the deformed!...
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English skills book 6 answers
... 10 . cheif, chief 11 . sentury, century 12 . dide, died 13 . disappear, dissapear 14 . except, egcept 15 . exsperience, experience 16 . famaly, family 17 . forty, farty 18 . freind, friend 19 . ... litter team string 1. A of bears 2. A of chickens 3. A of birds 4. A of geese 5. A of elephants 6. A of rabbits 7. A of insects 8. A of whales 9. A of herring 10 . A of ... snaerwed 6. stboaed 7. ragbgde 8. mocplinaed 9. carledde 10 . eqnuider 11 . torpetsed 12 . makrrede 13 . ortreted 14 . sghide 15 . eensder 16 . gestgused 17 . nwarde 18 . lleyed 19 . oarred...
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1081 question answers of the cfa exam level 1
... unemployment rate and employment/population ratio are: * 91. 57%; 17 .11 %; 63 % * 83%; 32.89%; 63 % * 76% ; 82.89%; 63 % * 91. 57%; 32.89%; 51% That answer is correct! Even people who are ... 45,000 + 18 ,000 = 63 ,000. The total labor force has been given to be 76, 000. The unemployment rate is defined as the fraction of the labor force unemployed. In this case, ( 76 - 63 )/ 76 = 17 .11 %. ... whole. $ 36. What was the average annualized inflation rate during this period? * 4. 51% * 7.88% * 12 . 21% * 30.00% * 6. 61% That answer is incorrect. Correct answer: 6. 61% The...
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A study on some major factors affecting English learning of grade 6 ethnic minority students of a mountainous secondary school to help them learn better
... in this school is not very high. 3.4 .1. 2. Students’ personality characteristicsQuestion 2 a b c d e f g hFrequency 6 4 9 9 15 12 5 10 % 12 8 18 18 30 24 10 20 Table 2: Students’ personality ... feeling for English as a subject. 2.3 .6. Environment and context of learning 2.3 .6. 1. Textbooks Textbooks are key components in most language program. Much of the language teaching that occurs ... learning”, (Lightbown, P.M & Spada, N. 19 99). There are many factors affecting language learning of the learners.Weiner, B. (qtd. in Williams, M. & Burden, R.L. 19 97: 10 5) suggested that,...
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Revision of E 6(Unit 9,10,11)
... D¬ng Quang- MÜ Hµo - Hng YªnA B 1. a packet of 2.a cup of 3.a glass of 4.a kilo of 5.a tube of 6. a bottle of 7.a bar of 8.a box of 9.a can of 10 . a dozena.cookiesb.apple juicec.orangesd.beere.teaf.beefg.waterh.soapi.chocolatej. ... week. 6. Brother's Tuan is big and tall.7.They has short black hair. Tµi liÖu båi dìng häc sinh khèi 6 1 NguyÔn ViÕt Thu©n- Trêng THCS D¬ng Quang- MÜ Hµo - Hng YªnA B 1. a packet of 2.a ... Adjectives of character: tall, short, fat, thin B.Exercises I.Match the words that have the antonym meaningsA B 1. big2.white3.thin4.short5.fat 6. heavy7.strong8.tall9.old 10 .newa.shortb.smallc.fulld.longe.weakf.lightg.blackh.thini....
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Test of unit 6+key
... __________ hiking to, from, and around the campsite, and many people believe that camping (64 ) __________ youngsters feel more (65 ) ___________. 61 . A. in which B. in where C. at which D. on ... dancing and singing around the ____________ when it began to rain. A. camping B. campsite C. camper D. campfire 1 UNIT 6 Independence Day is a holiday when most people rest. 83. Walt Disney ... confident D. important 13 . A. organize B. consider C. umbrella D. develop 14 . A. attempt B. scientist C. carry D. mountain 15 . A. persuadeB. lotus C. confirm D. resort 16 . A. wonder B. weather...
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